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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9356
Experience:  I have been practising for 30 years.
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One of binary options brokers operating in UK has asked me

Resolved Question:

one of binary options brokers operating in UK has asked me to send them $150,000 which will be kept with them as a suspended amount for a certain period in order for me to be able to withdraw $550,000 which is the investment amount generated under my account with them. According to them this deposit is required in order to comply with their regulatory authority for combating money laundering and the same will be transferred back to me along with the invested fund of US$ 550,000 after that certain period expires, is this claim legitimate considering the fact that this broker is not a lisenced broker? Is there such regulatory requirement in the market?
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

This sounds like a scam to me. Where is this company based? What is the name of the company? Why can they not simply deduct the hundred and $50,000 from the $550,000 which is alleged to be in the account?

This question is very common.

Have they told you which regulatory authority they are talking about?

Why would you paying them $150,000 for them to send you $550,000 combat money laundering? If fact, it sounds quite the opposite.

There is certainly no regulatory requirement like that in the UK although it may be different in the United States.

If you could let me have details of the UK broker company I can do a bit of investigation.

Best wishes.

Customer: replied 1 year ago.
The name of the broker is Bloombex Options and in fact they have threatened me if I don't send them $150,000 quickly I will be liable for tax payment of up to 42% of the total amount of $550,000. This broker is registered at Domonican Republic but they have office in London. Please advise what course of action should I take? Thanks
Customer: replied 1 year ago.
They have not told me which regulatory authority they are dealing with and they said they cannot deduct such amount from the $550,000
Customer: replied 1 year ago.
They said the $150,000 will also be transferred back to me and so they will not keep it
Expert:  F E Smith replied 1 year ago.

I can find some website reviews where the review has been done by the website.

They just give factual information.

Here is one.
http://scambroker.com/bloombex-options/

however, when you scroll further down and look at all the comments from the individuals, it appears that no one has ever actually had any money from them.

I can’t guarantee that this is a scam but having read the reports, it’s not a company that perhaps anyone should consider getting their money invested with. It appears that from some reports, the trial run always works as it should do and then, when you allegedly have made some serious money and want to take it out, you can’t and they demand more money to do so.

I would want to know which section of which statutory provision they want this large deposit for because I’m not aware of any statutory provision in the UK or any other country which works that way.

It is the second question on here with regard to Binary Options within the last 2 weeks although the other was a different company.

Customer: replied 1 year ago.
I will check this information on the section of the statutory provision that they refer to and will let you know by tomorrow,
Thanks
Expert:  F E Smith replied 1 year ago.

No problem

Customer: replied 1 year ago.
I requested them to tell me which regulatory authority that they are reporting to and which section of the statutory provision of such regulatory authority that they refer to and so far they haven't responded anything yet despite my repeated reminders. I am sure there is no such provision and I don't think they are reporting to any regulatory authority since they are not licensed broker. They are just trying to find some excuses in order to steal my money. Is there any way I can initiate legal action against them since they have office in London I am sure they must be operating there under some kind of license or permission from the UK authorities. Please advise
Customer: replied 1 year ago.
I hope you read my message, I am still waiting for your reply
Customer: replied 1 year ago.
I said is it possible for me to initiate legal action against Bloombex's London office for withholding my money without any valid reason?
Customer: replied 1 year ago.
Please advise
Customer: replied 1 year ago.
I am waiting for uour response, are you there?
Customer: replied 1 year ago.
Hello
Please note I cannot rate you as I still haven't got answer of my query from you which I asked you about the possibility of opening legal case against Bloombex's London office for withholding my money without any valid reasons. So please do the needful and advise your view at earliest so that I can rate you fairly. Thanks
Expert:  F E Smith replied 1 year ago.

The only authority in the UK that deals with this is the Financial Conduct Authority and there is nothing registered in the name of Bloombex.

In addition, emails and letter heads should have their FCA number on the bottom which I assume it doesn’t.

You can position court proceedings against Bloombex but of their registered office is somewhere offshore, Virgin Islands or suchlike, you may find it’s not particularly practical to do so because the costs will be prohibitive. You could well find that the London office is just a letterbox empty room. It would be worthwhile visiting the address, just to have a look get a private investigator to do it for you.

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