Giambrone learns of another Binary Options Company shut down

The Insolvency Service has wound up a binary options company offering the chance to trade on their platform.  Metro Options Limited traded for 17 months from its website when in December 2016 the company was abandoned and the website was rendered inaccessible.

Following complaints to Action Fraud the Insolvency Service mounted an investigation into the company and its activities.  The enquiries resulted in the discovery that almost everything the company said about itself was untrue.  Metro Options claimed to have been trading from its Canary Wharf registered office in Harbour Exchange Square, whereas in fact the company had never at any time had a registered office at that location.   It also alleged that it could offer astonishing investment returns of £400 per £500 trades.  In order to convince its unwary investors that it was above board the company claimed to have over 600 retail clients, that it was waiting for the renewal of its licence from the Cyprus Securities and Exchange Commission and also that trading insurances between 50% and 100% would be provided.  The Insolvency Services also found out that Metro Options had promised its investors that there was a bonus scheme and that the company would match customer deposits, none of which was true.  Neither was the claim that company operated a one-off refund policy for losses incurred in a 90 day period.

Unsurprisingly the investors were unable to retrieve their apparent investment returns and similarly the investors’ requests for refunds of their deposits went equally unheeded.  The bank accounts that the investors were asked to pay their money into were not actually the bank accounts of the company.  Giambrone has learned that the founding director of Metro Options, Kyle Snoxell, amazingly resigned on the day he was appointed stating that costs and problems with technology support services had swayed his decision.  His replacement is nowhere to be seen. 

The Insolvency Service can and will take action against companies that make deceptive statements aimed at misleading their potential clients and as in this case, induce them to invest in non-existent schemes.  The Insolvency Service is well placed to conduct investigations of this type using its powers under the Companies Act 1985 to carry out confidential investigations of live companies.   Giambrone has lawyers within a number of its offices with extensive insolvency law expertise covering more than one jurisdiction and can advise and act with confidence in this area of law.  Invoking the powers of the Insolvency Service against fraudulent investment brokers is a powerful tool in the fight against financial fraud that can be used to good effect.  Our banking and finance team at Giambrone works closely with the insolvency lawyers in certain instances in an attempt to halt the tide of fraud engulfing the banking sector.

If you have been affected by financial fraud or fraudulent investment brokers please contact our client services team or telephone 020 7183 9482.