Wednesday, March 5, 2008

Fx Active Liquidation

FxActive Liquidation
The popular FxActive trading platform has been closed down now for more than a month. The very reason the company was created (to facilitate trading) now no longer exists. I know there are many traders in South Africa and other parts of the world who would like some clarity on the affairs of the company.

The sister company JICM was placed into liquidation about 6 months ago. I have been approached by a number of traders and investors to initiate liquidation proceedings against FxActive due to my large trading account with the company.

It is apparent that no single individual is prepared to throw good money after bad by incurring further substantial costs in an effort to recover their funds. In light of these requests I have approached a number of investors and traders involved with FxActive to initiate liquidation proceedings against FxActive via a class action.

After lengthy discussions with attorneys we have been provided with a cost to bring an urgent liquidation application before the court. To date I have pledges from investors and traders for half of the amount necessary to lodge the application.

Obviously the Idea of the class action is to limit the cost for each individual involved. I know that there are hundreds of traders out there who would like to participate but cannot do so on their own.

This therefore is an invitation to contact me via my email feed or comments to participate in the process. At the moment the estimated cost per participant is R800. I am certain though that if we can get another thirty or fourty people involved this amount will be halved.

All the funds will go directly into the attorneys trust account to lodge a security bond with the high court necessary to institute the proceedings.

Obviously there are no guarantees as to the percentage of investors funds individuals will be recover once the process is complete.

The current status is that the company still has offices and staff and for all intents and purposes are pretending to be a going concern. Traders however are not able to trade on the platform. These costs have to be met each month and I can only speculate that investors funds are being used to fund this sinking ship.

As the JICM liquidation process is well advanced, the close ties between the two companies could result in the liquidators of JICM seizing the assets of FxActive as well. This would leave little or nothing for FxActive traders and investors to claim at a later date. We will therefore endeavour to have the same liquidator appointed to handle the Fxactive liquidation in order to ensure an equitable distribution of funds.

Many might also be aware of criminal proceedings being handled both by the National Prosecuting Authority (Instructed by the Financial Services Board) Contact Connie Bakkes Special Senior Investigator on +27(0)12 842 1400 / 1445 and the Commercial Crimes Unit (private initiative) These actions are designed to prosecute should any illegal activities or fraud have taken place, not necessarily recover clients funds.

As you are also aware it is near impossible to contact the company or CEO either telephonically or via email to get the answers we need.

If you would like to participate in this process then please contact me as a matter of urgency to expedite this matter. Your details will not be published or used for any purpose other than to expedite the Liquidation process