process success | Forex Scam & Fraud – Shareholders – Cyprus – Mondaq | Omd Cialis

To print this article, all you need to do is register or log in to

…after nine years in court, the company’s shareholder offered a settlement, bringing in funds from outside Cyprus to compensate our customers.

We are pleased to announce another success in Forex fraud and fraud litigation.

On 04/07/2022 we managed to obtain a mutual judgment in favor of our clients in a class action lawsuit by 53 plaintiffs (our clients) against a Cypriot investment company (a forex & market maker broker whose license was suspended and later withdrawn by CySEC) and its foreign shareholder.

After more than nine years of litigation in the Limassol District Court, after also seeking and successfully obtaining an injunction against the defendants in the lawsuit, whose bank accounts have been frozen since 2014, we are pleased that this case is coming to an end with that the defendants bring money from outside Cyprus to compensate our clients and their costs.


Our clients had trading accounts with the defendant broker, a Cypriot investment firm licensed by the Cyprus Securities and Exchange Commission for FOREX asset trading, with power of attorney of our clients by power of attorney to the broker and/or to an affiliate and/or group company to the broker to trade their funds on behalf of our clients. While our customers’ accounts accumulated profits with significant deposits, all of our customers’ accounts were zeroed out overnight without any apology. Our clients’ funds were taken by the forex broker without any reasonable or justifiable apology.

This case has been brought in court as a forex fraud and/or forex fraud case against the forex broker company, but also against its directors and chief compliance officer (for negligence and/or breach of statutory duty), but also against its shareholder filed for the purpose of repaying funds received in the form of dividends. In addition, a judicial determination of factual and/or resulting confidence in the shareholder was requested.

Fortunately, after nine years in court, the company’s shareholder offered a settlement, bringing in funds from outside Cyprus to compensate our customers.

What are the legal duties of the directors and/or compliance officers of a forex broker?

The board of directors

A CIF, when allocating functions internally, must ensure that its senior management and board of directors are responsible for ensuring that the CIF fulfills its obligations under the Law on Investment Services and Activities and Regulated Markets (“the Law”). In particular, senior management and the board of directors are required to evaluate and regularly review the effectiveness of the policies, arrangements and procedures put in place to fulfill the obligations under the law and the policy and to take appropriate measures to counter them Defects.

These arrangements must conform to the following principles:

  • the board must be responsible for the CIF and approve and oversee the implementation of the strategic objectives, risk and internal governance of the CIF;

  • The Board ensures the integrity of the accounting and financial reporting systems, including financial and operational controls and compliance with the law and related standards;

  • the board of directors must oversee the process of disclosure and communication;

  • The Board of Directors must be responsible for providing effective oversight administration.

The Board regularly monitors and evaluates the effectiveness of the CIF’s governance arrangements and takes appropriate action to address any deficiencies.

Compliance Officer

This role requires the creation of a detailed compliance plan detailing how policies and procedures will be monitored to ensure they are effectively put into practice. The compliance and AML compliance officer must also regularly review the policies and procedures followed by employees to ensure compliance with the company’s internal operations manual.

Through a detailed compliance plan, the Compliance & AML Compliance Officer must also regularly review all core areas such as the AML & KYC procedures, corporate governance rules, the brokerage department. Upon completion of the reviews, summary reports are to be prepared and submitted to the Board of Directors.

From the perspective of the AML Compliance Officer, he is responsible for ensuring that the company is applying and complying with the AML regulatory framework to identify and report suspicious activity and ensuring that employees are informed of important regulatory changes and updates.

What is a constructive/resulting trust?

This is a trust created by law without the express intention of the settlor. The constructive trust is a term used primarily in litigation when a person against whom a claim is made (i.e. the defendant) holds money which may be the result of the loss of the victim (i.e. the plaintiff) if the plaintiff acts successfully. In other words, applying the general principles mentioned to the above case, we have applied for a court order on behalf of our clients – ie the plaintiffs – stating that if our clients’ lawsuit against the forex broker should be successful, all Profits resulting therefrom, Defendant’s broker, who has accrued the losses of our clients, which were then distributed as dividends to its shareholder, is the subject of a constructive and/or consequential trust created implicitly by law in favor of our clients; and that such monies received by the Shareholder as profits from the forex broker will be held and returned in escrow by order of the Court for the benefit of our clients.

The content of this article is intended to provide a general guide to the topic. In relation to your specific circumstances, you should seek advice from a specialist.

POPULAR ARTICLES ABOUT: Cyprus Corporate/Commercial Law

Trust Essentials: July 2022


As the demands (and resulting disputes) of HNW individuals and families become more complex, courts in our jurisdictions are often faced with cases that require new…

Trustees trapped by troubled trusts: take ten


On May 18, 2022, the Cayman Islands Grand Court entered an ex tempore judgment sanctioning a momentous decision by Standard Chartered Trust (Singapore) Limited (Trustee) in its capacity…

Europe’s new favorite business gateway

Dixcart Group Limited

The year 2022 offers a wide range of business opportunities for the world to come and Madeira offers great potential – even more so for a small group of islands in the Atlantic Ocean.

Why should you incorporate your business in the UAE in 2022?

oneworld ltd

In recent times, the UAE has emerged as one of the most important IFCs in the world. The economy of Dubai and the UAE has grown exponentially over the past 10 years.

At a Glance Guide to Jersey Blessing Treatments


From time to time, trustees may find themselves in a situation where they are considering making a decision with respect to a trust in circumstances where there are potentially significant risks associated with that decision.

Leave a Comment