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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71048
Experience:  Over 5 years in practice
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This person wants to sue me unless I paid him. This blackmail

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This person wants to sue me unless I paid him. This blackmail in my book. After reading this email I listed below does he have grounds to sue me or should I go to the police.

Right, I have been doing a lot of thinking about the whole GTL Tradeup mess. I’ve also talked to a few of my friends who are lawyers in different fields and explained the whole situation and like you, they are all saying that the money has now gone. I find this very difficult to accept especially right now at a time where I would have cashed in as I need the money due to me buying a new house.

XXXXX XXXXX from NZ has also basically given up unless everyone joins Slater and Gordon and pays them £200 each to cover the legal costs to see if we can get our money back – which will be a very long winded process and probably get us no where. I will send you his last email just so you can see the detail.

I always accepted the money could be lost in bad trades that you could have done – but the way you explained it to me and Sid sounded like a responsible way of trading and the risk was low – but what I can’t accept is the money being lost due to GTL going into liquidation. While me and Sid were thinking about investing with you, we raised our concerns re some of the rumours that were online re GTL and Mahmood Riaz – and you reassured the both of us by telling us and I quote:
•"My existing Broker Velocity have merged with GTL Tradeup which are Sydney and Dubai based. Here is the sign up link. Funds are kept in segregated bank accounts in an Australian Bank.”
•"here is the link that explains were your funds are kept, they are segregated client trust account and the bank is Commonwealth Bank of Australia which is triple A rated.”

Sid then sent you a mail:

Hi Tony,
I was doing some research on the broker and this came up.

Is this the same trader ?



Your response was:

Hi Sid

No relation, GTL Tradeup Pty Ltd. Covered under the I was caught up in the MF global and I got every cent back.

As I said come the end of this financial year we are moving to Interactive Brokers UK



So based on your responses, both Sid and I felt like you knew what you were talking about and gave us the reassurance that everything was protected – so I invested $20k (£13k) with you – like I said earlier, I was happy at the risk of losing money based on bad trades – but not when GTL goes into administration and I am not protected when you told me I was. Its very difficult for me to accept and I trusted you. What has turned out that even though the money was in segregated accounts, it wasn’t covered and Riaz could access that money – so clearly you don’t know the Australian law when it comes to this.

I know what has happened with GLT going into liquidation is not your fault – but I really do feel that you have misled me and if I knew that the rumour re Riaz that was flying about and the money was not properly protected, I would have never invested the money in you. You also said that you would be moving your broker to Interactive Brokers UK at the end of the financial year which never happened – again I was way more comfortable with this as they would have been regulated by the FSA and the money would have probably been protected.

So based on the above facts, both my lawyer friends agree that I have grounds to sue you and both of them are willing to represent me in court based on the evidence I have provided them. I don’t want to sue you Tony, I really don’t, but I feel that I might have too. I can’t just write off £13k that easily especially when I questioned you about the legitimacy of GTL and the reassurances that you gave.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

He is arguing a misrepresentation against you. Those are grounds to sue although obviously it might get nowhere in court.

However, even if he made an entirely wild threat to sue that does not amount to blackmail and the police would not be interested. People make baseless threats to sue all the time without committing any offence.

Blackmail involves an unwarranted demand with menaces. Menaces have been interpreted to mean doing things like attending at a property and making threats to set the house on fire with children inside or threatening to put intimate pictures on the internet. A threat to go to a county court where your claim will be struck out as its not properly arguable is not comparable.

I'm very sorry if this is bad news.

Can I clarify anything for you?

Jo C. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

I guess I will have to wait until I get served. But I thank you for your response. Can you get Legal Aid if you are been sued, or shall just represent myself.




Tony Smart

Its very unlikely he will sue.

You probably would not get legal aid but then neither will he so self representing will be fine.

Thank you for the positive rating and remember that I am always available to help with your questions. For future information, please start your question with ‘FOR JO C’. You can also bookmark my profile
Customer: replied 3 years ago.

He has 2 lawyer friends that are doing it for free. So we will see.

Well, he says he does.

Wait to see what does happen and defend it in court if he does.

Misrepresentation is a high test.