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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 14089
Experience:  I have been practising for 30 years.
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If an investment company promised very large returns and

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Hello, If an investment company promised very large returns and that 3 weeks deposit protection. And they fail these promises is there a case?
JA: Where are they? It matters because laws vary by location.
Customer: UK
JA: What steps have they taken so far?
Customer: I deposited in an account they invested it, its currently at loss
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Just enquiring they haven't said they won't refund the money if its lost I just wanted to get an idea of my protection incase they don't
Customer: replied 9 days ago.
I have emails that reiterate my claims. However, the majority of them were made over the phone
Customer: replied 9 days ago.
They also were pushing me to invest every penny I had, and more money when it was paid. Under the premise that this afternoon I could withdraw my profits and use that money to live

Good morning. I will assist with your question - be aware this is an email not chat service therefore i maybe delayed in replying.

how did you get involved with this?

who are they?

did you research them at all?

how much have you given them?

and how -bank transfer/credit card?

Customer: replied 9 days ago.
They are an online approved broker, Coin2Fx. Yeah they had great reviews and are approved financial business. Ive deposited just over 2k. Via a debit card. The trade has been lost and upon speaking to the customer support they are going to credit my account with some of it back like 1k and use that to trade back into profits. They have call recordings of all the promises that were made.
Customer: replied 9 days ago.
Are you going to reply?
Customer: replied 9 days ago.
In order to receive the additional funds back they want me to sign this contract

I get dozens of questions about potential scams and 99% of them are about Bitcoin, Forex and Binary options.

The common scam is that you put a little bit of money in and you get a good return. Very often, the investor will take the growth money out and there is no problem.

Because you are so impressed you put a little bit more money in and you get another good return and you can take the growth money out and there’s no problem.

Incidentally, if ever you want to take the whole lot out, you will usually hit a brickwall. However assuming that you haven’t:

 

You are so impressed that you then invest your life savings. Either communication stops or they want a fee for some kind of spurious licence required by the authorities in Singapore, Timbuktu, Latvia, Estonia, the Dominican Republic, or somewhere else where it’s impossible to find out if it’s legitimate or not.

There has been a lot in the press about this:

https://www.independent.co.uk/news/business/news/online-scam-thousands-pounds-life-savings-trading-binary-options-fraud-pensioners-fca-a7865856.html

 

 

Based upon what you told me, that is exactly the situation you are in.

Ultimately, if they don’t pay you, then you have no option but to take into court but many of these companies are based in Cyprus and it’s really not practical.

Don’t be at all surprised the next thing is that they want money from you to withdraw any money and that withdrawal is not coming either. I am sorry to be the prophet of doom.

Customer: replied 9 days ago.
Thanks for the reply. Do you believe its worth taking it to Court?

I believe this company is based in the UK.

 

It depends whether it is a scam or not. If it’s a legitimate business and they are just being difficult, then yes it is.

If it’s a scam, it’s going to be a waste of time.

Being brutally honest with you I have never yet come across one of these companies which was not a scam.

By all means issue court proceedings because you lose nothing apart from the court fee you are then going to need a UK address. Don’t be surprised if they don’t defend it and you get default judgement but then find the company’s offices have either been vacated or are simply a letterbox in an accommodation building somewhere. You need to check all that out first.

Customer: replied 9 days ago.
Yeah that's fair enough. I have an address for them in London.

I don't believe they are a scam but you may be right. As they have the phone recordings that back up my claims would they be legally obligated to turn them over?

Also thank you very much for your insight.

If you need those recordings and they won’t hand them over, then you can always make an application to court for specific disclosure to make them hand them over. I think you should prepare for the worst and then, if you do get your money back it’s a bonus. What I would not do however is weight around because if this is as can and they want to perpetuate the scan, they may pay you out in respect of the court proceedings rather than go to court and potentially face being closed down.

 

If they are regulated by the Financial Conduct authority then you can of course complain to the Financial Ombudsman Service but from experience, these firms are not regulated.

 

I am glad to help. Please don’t forget to use the rating service because it means that I can continue to provide affordable and timely legal advice to people with similar problems.

Although it says "rate to finish" it doesn't close the thread and we can still exchange emails.

You may need to login again to use the rating service.

Thank you.

Best wishes

F E Smith and 4 other Law Specialists are ready to help you
Customer: replied 8 days ago.
Thank you very much for all of your help.