ACM answers back as fraud probe continues
by Malcolm Curtis
Geneva - 06 April 2009 | 12:51
A New York-based currency trader explains why a Mexican bank lodged the complaint that led to last week’s police raid on Geneva-based online trading company ACM in a suspected financial fraud case. However, in a statement to Swisster, the firm is countering the allegations with charges of its own, accusing a disaffected client of blackmail, defamation and forgery of documents.
A complaint by MexBank over allegedly fraudulent currency trading is at the root of a police investigation launched last week into the operations of Geneva company Advanced Currency Markets (ACM), according to a New York trader familiar with the affair.
As revealed by Swisster on Friday, a squad of 28 Geneva police officers from the financial fraud brigade entered the offices of ACM at 50, rue du Rhône, and seized documents, a computer and other potential evidence, while investigators questioned half a dozen officials from the company.
ACM has denied any wrongdoing, claiming to be the victim of false information provided by a vengeful former client.
Ilya Paniotov, a New York currency trader who traded with ACM for almost three years, told Swisster on Monday that the company “cheated” clients through its computerized trading platform. It used falsified currency prices, widening spreads and changing “margins,” the money required to execute trade, he alleged.
“I feel it was totally illegal,” said Paniotov, a native of Russia who said he has worked as a currency trader based in the US for the past eight years after working as a computer programmer. Paniotov, who said he traded currencies with ACM on behalf of MexBank, flew to Geneva last week to provide testimony to Geneva police about his concerns.
However, ACM issued a statement Monday denying any wrongdoing, saying it was the victim of a former client “bent on malicious intent.” The statement, issued by ACM managing director Nicholas Bang, said that the company “lodged a complaint against this former client with accusations of blackmail, defamation and forgery of documents.”
Bang said police visited ACM’s offices on Thursday “on the basis of counterfeit documents produced by a former client.” The company delivered all the information required, “collaborating in a transparent and active way,” Bang stated. “All elements prove ACM’s good faith.”
Paniotov remains convinced of his case and cannot believe that ACM is carrying on as if it’s business as usual. He said his concerns arose in March 2007 after he managed two different accounts with ACM. He noticed that currency trades conducted at the same time on the accounts yielded different prices. ACM told him it used different “liquidity providers,” or banks, to transact the currency deals, he said.
Paniotov was also concerned about the company raising margins, without warning, requiring clients to pay a large infusion of cash in order to continue trading. After he raised complaints, ACM eventually blocked him from trading. Paniotov said a former trader from ACM later provided him with computer “screen shots” showing the discrepancy between different euro-dollar trades executed at the same time.
Paniotov said MexBank launched proceedings against the Geneva company after losing millions of dollars in trades. The bank hired a lawyer and private investigators before contacting Swiss authorities, which led to last Thursday’s police raid, Paniotov said.
None of the allegations have been proven and police spokesman Patrick Pulh told Swisster on Friday that the case, under the direction of examining magistrate Vincent Fournier, might take weeks to complete.
But ACM is already taking a beating from Forex Peace Army, a chat room devoted to discussing foreign exchange scams, which has published several complaints about the company, including at least one from a former unidentified employee.
“Stay as far away away (from ACM) as you can if your money means something to you,” the ex-employee said. However, mixed in with negative comments there is positive feedback too. Katalin Kovacs, from Lausanne, for example, praised the ACM trading platform, calling it “excellent for serious trading people.”
Swisster initially contacted ACM on Friday in an effort to get a comment with regard to the reported arrest of company employees, based on information passed on by an employee.
Bang, ACM’s deputy general manager, replied with an email received after the press deadline. “I am one of the directors and owners of ACM,” he said. “I can confirm that no individual employed by ACM has been arrested now or in the past,” he said. “I'm afraid the information you have is quite ludicrous and clearly incorrect.”
The case comes after ACM, billed as the world’s largest online currency trading company, applied to Swiss financial authorities in March for a banking licence. Founded in 2002, the company employs 130 people with offices advertised in Zurich, Dubai, Montevideo and New York.
According to the Tribune de Genève it manages trades exceeding 100 billion dollars. One of the company’s founders, Alexandre Axarlis, told the newspaper last year that its annual revenues hit 70 million francs in 2007.
Related article:
Police raid Geneva forex firm in fraud probe
http://www.swisster.ch/en/news/business ... 16-1455728
ACM sospechoso de caso de fraude
Police raid Geneva forex firm in fraud probe
by Malcolm Curtis
Geneva - 03 April 2009 | 18:05
EXCLUSIVE: A squad of 28 police officers raid the downtown Geneva offices of currency trading company ACM and seize documents, a computer and other evidence in a suspected financial fraud case. Swisster discovers the unprecedented affair, being directed by an inspector and detective for the cantonal force’s financial fraud brigade, may take weeks to unravel and has involved the questioning of top officials from the company, who are refusing to comment.
Geneva police are continuing to investigate a foreign exchange trading company based in the city after launching an unprecedented raid of the firm’s downtown offices, a spokesman for the cantonal force said Friday.
Swisster has learned that a squad of officers raided the premises of ACM (Advanced Currency Markets) on Thursday morning seeking evidence in relation to a suspected financial fraud case.
“I can confirm to you that yesterday 28 police officers went to the offices (of ACM),” Geneva police spokesman Patrick Pulh told Swisster. Police took away documents, a computer and other evidence from the company’s premises at 50, rue du Rhône, he said.
In addition, senior officials were questioned by police, although Pulh said no-one has been arrested. A company employee told Swisster that a trader and four of the company’s senior management, including Nicholas Bang, deputy general manager and one of ACM’s founders, were contacted at their homes early Thursday and taken in for questioning.
“We are being told that it has to do with a client from two years ago based in Mexico who had lost a lot of money from the company,” the informant said. “The client was looking for documents to see if there was any misappropriation.”
Pulh confirmed that senior company officials were questioned but could not go into details. “At this moment no one has been arrested,” he said. An inspector and a detective from the cantonal police force’s financial fraud brigade are directing the investigation, Pulh said.
“It could take a few days or a few weeks to work on this case,” he said. “We are at the beginning of the investigation so that’s why we are not saying what kind of charges are being looked at . . . it’s early in the investigation.”
ACM did not immediately respond to an emailed request from Swisster for a statement about the investigation from company CEO Lloyd La Marca, or another representative. “I’m afraid we cannot comment on it,” said Claudia Schulz, a marketing spokesman for the company. "Personally I would not take responsibility for commenting." Schulz said she would pass on Swisster's request to the company's marketing manager.
Operations at ACM, which employs a staff of about 100 people working on two floors, including sales staff and currency traders, appeared to continue normally on Friday. Founded seven years ago by La Marca and Bang, former students of the University of Geneva, and Alexandre Axarlis, a former United Nations and World Trade Organization employee, ACM has grown to include offices in Zurich, New York, Dubai and Montevideo.
The company offers a range of currency trading services. ACM “offers the most competitive, transparent and simple execution to the foreign exchange trader,” according to its website.
http://www.swisster.ch/en/news/business ... 16-1451105
by Malcolm Curtis
Geneva - 03 April 2009 | 18:05
EXCLUSIVE: A squad of 28 police officers raid the downtown Geneva offices of currency trading company ACM and seize documents, a computer and other evidence in a suspected financial fraud case. Swisster discovers the unprecedented affair, being directed by an inspector and detective for the cantonal force’s financial fraud brigade, may take weeks to unravel and has involved the questioning of top officials from the company, who are refusing to comment.
Geneva police are continuing to investigate a foreign exchange trading company based in the city after launching an unprecedented raid of the firm’s downtown offices, a spokesman for the cantonal force said Friday.
Swisster has learned that a squad of officers raided the premises of ACM (Advanced Currency Markets) on Thursday morning seeking evidence in relation to a suspected financial fraud case.
“I can confirm to you that yesterday 28 police officers went to the offices (of ACM),” Geneva police spokesman Patrick Pulh told Swisster. Police took away documents, a computer and other evidence from the company’s premises at 50, rue du Rhône, he said.
In addition, senior officials were questioned by police, although Pulh said no-one has been arrested. A company employee told Swisster that a trader and four of the company’s senior management, including Nicholas Bang, deputy general manager and one of ACM’s founders, were contacted at their homes early Thursday and taken in for questioning.
“We are being told that it has to do with a client from two years ago based in Mexico who had lost a lot of money from the company,” the informant said. “The client was looking for documents to see if there was any misappropriation.”
Pulh confirmed that senior company officials were questioned but could not go into details. “At this moment no one has been arrested,” he said. An inspector and a detective from the cantonal police force’s financial fraud brigade are directing the investigation, Pulh said.
“It could take a few days or a few weeks to work on this case,” he said. “We are at the beginning of the investigation so that’s why we are not saying what kind of charges are being looked at . . . it’s early in the investigation.”
ACM did not immediately respond to an emailed request from Swisster for a statement about the investigation from company CEO Lloyd La Marca, or another representative. “I’m afraid we cannot comment on it,” said Claudia Schulz, a marketing spokesman for the company. "Personally I would not take responsibility for commenting." Schulz said she would pass on Swisster's request to the company's marketing manager.
Operations at ACM, which employs a staff of about 100 people working on two floors, including sales staff and currency traders, appeared to continue normally on Friday. Founded seven years ago by La Marca and Bang, former students of the University of Geneva, and Alexandre Axarlis, a former United Nations and World Trade Organization employee, ACM has grown to include offices in Zurich, New York, Dubai and Montevideo.
The company offers a range of currency trading services. ACM “offers the most competitive, transparent and simple execution to the foreign exchange trader,” according to its website.
http://www.swisster.ch/en/news/business ... 16-1451105
Al menos es un gusto ver que los principales organismos reguladores están funcionando para poner límite a cualquier intento de fraude... Luego del escándalo de la pirámide del sinvergüenza Madoff, es seguro que habrá mayor control mundial contra estas lacras en los mercados financieros.
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DarkTemplar
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