Following the shock announcement last week by administrators called in to unravel the collapse of a purportedly reputable foreign exchange company operating in Portugal, fleeced clients have banded together to turn ‘sleuths’ in the battle to get what is undoubtedly lost millions back.
The Facebook group “Victims of Premier FX” has been buzzing with information since its members heard that the safeguards they thought were in place protecting their money were just expedient waffle.
The group has powered a fraud investigation, it is sending out appeals over social media for the ‘missing third parties’ in this drama and it is generally swapping notes and keeping everyone in the loop in a way that official entities do not have the time for.
As one group member quipped, “the people behind this scandal very possibly didn’t bank on a bunch of retired folk who can spend all day researching on their computers”.
True, some of the information may lead nowhere, but some may give authorities vital leads.
Into the maelstrom has stepped Safe Communities Algarve – the citizens help group set up by retired police commissioner David Thomas – and this is now expediting the exchange of information between authorities in the UK and those in Portugal.
As administrators have explained, there is no doubt now that Premier FX was operating beyond its remit.
The bombshell delivered last week by Peter Hart of PKF Geoffrey Martin & Co told scores of clients who already feared the worst that Premier FX’s banker, Barclays, was not in fact instructed to hold pre-transaction funds in segregated individual client accounts.
Just as the Resident suggested at the beginning of August, the assurance of segregated accounts was bogus.
Stressed Peter Hart in his letter dated August 22: “The FSCS (Financial Services Compensation Scheme) have confirmed the following:
“Whether or not a business is covered by the FSCS is determined by the Permissions that the business has been granted by the FCA (Financial Conduct Authority). Unfortunately, Premier FX did not conduct FSCS-protected business, so FSCS is unable to compensate for any shortfalls in Premier FX customers’ money, however deserving their cases”.
Bearing in mind that administrators have discovered what they term “minimal credit balances”, held by Barclays, translating into “a significant shortfall to customers”, the bottom line now is that clients have to sit it out and wait for administrators to carry out their investigations.
The concern, however, is that by the time these are concluded, whatever money has been discovered could end up going to pay for the services of the likes of Geoffrey Martin & Co.
Thus the Facebook group’s endeavours – including provocative posts of the faces of Premier FX players who have all seemingly ‘gone to ground’.
These posts are being widely shared, and sent to fellow victims in Mallorca, where press reporting – for reasons unclear – has been minimal.
Behind the scenes much is ongoing to track the transfers out of Premier FX client account to third parties and beyond.
News of these inquiries, however, is being kept to a minimum for obvious reasons. Social media can be a useful tool to disseminate information, but it can also help tip the wrong people off.
Meantime, the bottom line is that anyone using a foreign exchange company to move money must check on the permissions and licences that that company has in place before entrusting their money.
This can be done by accessing the FCA (click here) and typing in the name of the company in question. Company employees equally can be ‘checked’ via this register, to see whether they too have the necessary credentials/ qualifications to offer the services they are advertising.
Questions now are being asked about Barclays Bank’s role in this drama.
As one client who is down over 300,000 euros has commented: “Someone is lying. It is unbelievable that Premier FX could have traded for so long under the guise of the FCA with Barclays not knowing what was going on…”
Another victim of this debacle has researched similar foreign exchange company ‘scandals’ to find Barclays’ name as the holding bank for client cash.
This particular ‘victim’ has since published a swingeing letter to Barclays online which has received internal red flag status – meaning it requires response “as a matter of urgency”.
She has been told she will get an answer to all the points raised by September 3.
natasha.donn@algarveresident.com
