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Financier arrested in money laundering case | Business | guardian.co.uk
'Financier arrested in money laundering casePolice appeal to investors for information after firm involved in £40m currency fund ceases trading
Owen Bowcott guardian.co.uk, Thursday 12 February 2009 20.12 GMT Article historyAn Essex financier who controlled a currency trading fund estimated to be worth £40m has been arrested by City of London police on suspicion of money laundering.
GFX Capital Markets Ltd ceased trading amid reports that the fund manager had received death threats. Customers have complained of difficulty in recovering their cash.
The precise extent of any financial losses is unknown. Detectives from the force's economic crime unit are appealing for investors to disclose their claims.
Police did not name the 60-year-old man who had been arrested on Monday on suspicion of offences under the Financial Services and Markets Act. He has since been released on bail.
GFX Capital Markets was regulated by the Financial Services Agency (FSA), the watchdog at the centre of the row this week over heavy losses at HBOS. The FSA said it was "aware of the issue and discussing it with City of London police".
The trader could not be contacted today. A receptionist at a City office where the firm was based said that GFX had moved out "about two months ago".
Tim Sullivan, of the chartered accountants Martin Greene Ravden, was commissioned to help GFX go through a ''reconciliation'' process, working out what should have been shown on clients' accounts. "We were going to act for them," Sullivan said, "but we never heard back."
The police force carries a statement on its website asking that any investors fill in a detailed questionnaire about dealings with the firm.
Among the questions it lists are: ''How or by whom were you introduced to GFX'', "Financial loss (if any) incurred as a result of investment" and details of any bank accounts "that you were instructed to remit funds to".
GFX is believed to have been trading for the past three or four years. The last entry on its website, used to communicate with customers, is dated 10 February.
It declares: "Dear clients of GFX. Firstly, please accept this apology for the way this message is being conveyed. It is the quickest way to ensure all clients are aware of the current situation. [The trader] is currently being investigated by the City of London police ..."
In an earlier posting on 3 February, the trader informed customers by means of a series of questions and answers. "Q: If the lawyers and regulatory bodies are involved does this suggest bad news? A: There is nothing negative to be taken from us seeking advice and assistance from outside sources."
The customer feedback had shown growing anxiety. On 25 January, one investor, Kay, posted: "I am concerned that requests for withdrawal of funds are still not resulting in investors getting their money three months after their request."Another from Steve on 30 January queried: "It's been very quiet since you disclosed the poor results for the past 3 months. I need to speak to someone from admin but nobody ever gets back to me. WHAT IS GOING ON???"
In an attempt to placate irate clients, the trader pleaded with customers shortly after the new year: "We must not allow the diary to become a forum for individual grievances and negative comments."
Financier arrested in money laundering case | Business | guardian.co.uk
'Financier arrested in money laundering casePolice appeal to investors for information after firm involved in £40m currency fund ceases trading
Owen Bowcott guardian.co.uk, Thursday 12 February 2009 20.12 GMT Article historyAn Essex financier who controlled a currency trading fund estimated to be worth £40m has been arrested by City of London police on suspicion of money laundering.
GFX Capital Markets Ltd ceased trading amid reports that the fund manager had received death threats. Customers have complained of difficulty in recovering their cash.
The precise extent of any financial losses is unknown. Detectives from the force's economic crime unit are appealing for investors to disclose their claims.
Police did not name the 60-year-old man who had been arrested on Monday on suspicion of offences under the Financial Services and Markets Act. He has since been released on bail.
GFX Capital Markets was regulated by the Financial Services Agency (FSA), the watchdog at the centre of the row this week over heavy losses at HBOS. The FSA said it was "aware of the issue and discussing it with City of London police".
The trader could not be contacted today. A receptionist at a City office where the firm was based said that GFX had moved out "about two months ago".
Tim Sullivan, of the chartered accountants Martin Greene Ravden, was commissioned to help GFX go through a ''reconciliation'' process, working out what should have been shown on clients' accounts. "We were going to act for them," Sullivan said, "but we never heard back."
The police force carries a statement on its website asking that any investors fill in a detailed questionnaire about dealings with the firm.
Among the questions it lists are: ''How or by whom were you introduced to GFX'', "Financial loss (if any) incurred as a result of investment" and details of any bank accounts "that you were instructed to remit funds to".
GFX is believed to have been trading for the past three or four years. The last entry on its website, used to communicate with customers, is dated 10 February.
It declares: "Dear clients of GFX. Firstly, please accept this apology for the way this message is being conveyed. It is the quickest way to ensure all clients are aware of the current situation. [The trader] is currently being investigated by the City of London police ..."
In an earlier posting on 3 February, the trader informed customers by means of a series of questions and answers. "Q: If the lawyers and regulatory bodies are involved does this suggest bad news? A: There is nothing negative to be taken from us seeking advice and assistance from outside sources."
The customer feedback had shown growing anxiety. On 25 January, one investor, Kay, posted: "I am concerned that requests for withdrawal of funds are still not resulting in investors getting their money three months after their request."Another from Steve on 30 January queried: "It's been very quiet since you disclosed the poor results for the past 3 months. I need to speak to someone from admin but nobody ever gets back to me. WHAT IS GOING ON???"
In an attempt to placate irate clients, the trader pleaded with customers shortly after the new year: "We must not allow the diary to become a forum for individual grievances and negative comments."
