The Forex broker owes approximately NZ$7 million (US$4.68 million) to some 1,100 clients, whereas the current amount of funds recovered is 10 times smaller.
BlackfortFX’s receivers publish final report, receipts total humble NZ$755,000
Grant Robert Graham and Neale Jackson of KordaMentha – appointed receivers at now-defunct Forex broker BlackfortFX (aka Arena Capital) in May 2015 amid concerns voiced by New Zealand’s Financial Markets Authority, have just published their final report on the case.
The conclusion from the receivers’ work for the period from their appointment until the transfer of the work to the liquidators in late August is not rosy. The brokerage is estimated to owe about NZ$7 million (US$4.68 million) to some 1,100 clients. According to the receivers’ final report, however, the amount of total receipts is only NZD 755,334.
During their investigation, the receivers concluded that BlackfortFX has never actually been active in the Forex market. That is why the receivers had to turn to clients to ask them to return the “profits” they had generated with the broker. Obviously, the amount of funds recovered this way is not impressive. Only NZ,538 were recovered from clients of the company.
Given various legal expenses and payments for the work of the receivers, the sum sent to the liquidators is meager NZ7,256.
Whereas the work of the receivers of BlackfortFX is over, the work of the liquidators from KordaMentha continues.
For the full final report by the receivers, click here.
David Hobart
David Hobart is Managing Director of FinAffiliates Limited, the UK media group behind LeapRate, AskTraders and a network of more than 30 financial and trading titles published across several languages and regulated markets. He writes on the commercial side of the industry: broker marketing, client acquisition, affiliate strategy and the editorial standards that hold it together. He is based in North Norfolk.
