Investors Sue 5 Owners of Defunct Broker FxWinning for $28M, Allege Fraud

<p>A group of
investors led by Cody Kerns have dragged defunct online forex trading firm,
FxWinning Limited, and its five owners to court over allegations of fraud and
deceptive trade practices. Sanchez Fischer, the South Florida-based law firm
representing the investors, <a href="https://www.prnewswire.com/news-releases/forex-trading-platorm-fxwinning-and-its-principals-accused-of-engaging-in-fraud-and-deceptive-trade-practices-301891622.html" target="_blank" rel="follow">announced</a>
the lawsuit today (Wednesday) noting that the legal action was initiated last
week. </p><p>‘A
Sophisticated Scheme’</p><p>FxWinning
Limited, according to one of its websites, is registered in Hong Kong. The
company operates two
forex websites: fxwinning.net and fxwinning.pr. </p><p>Sanchez Fischer, citing the 27-page lawsuit, lists the owners and partners of
FxWinning Limited as David Merino, Renan da Rocha Gomes Bastos, Jonathan Lopez,
Julian Kuschner, and Rafael Brito Cutie. In the
lawsuit, the investors alleged that FxWinning and its principals solicited tens
of millions of dollars by touting the platform’s trading algorithm and making
“false promises, misrepresentations, and outright lies.” </p><p>Furthermore,
the investors
claimed that FxWinning and its agents engaged in “a sophisticated scheme” that
lured them into investing with the <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a> and subsequently substantially increasing their investments by making false promises of lucrative
returns.</p><p>However,
instead of delivering the promised returns, FxWinning prevented client withdrawal, citing <a href="https://www.financemagnates.com/tag/compliance/" target="_blank" rel="follow">a compliance audit</a>. The brokerage later shut
down, despite
assuring investors that they had passed the compliance check. The investors are now seeking to recover over $28 million through legal action.</p><p>‘Plaintiffs
were left with no method of withdrawing their funds from their FxWinning
accounts, and FxWinning and its principals simply stole their investors'
money,” the law firm stated in the statement.</p><p>A Defunct
Broker</p><p><a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance
Magnates</a> conducted a check on fxwinning.net and found that the forex trading
platform ceased operations
in late June, citing “unforeseen circumstances.” The other website, fxwinning.pr,
remains inaccessible. </p><p>On its
website, fxwinning.net claims to offer its users “a powerful trading platform
in web, tablet or mobile”. The website also lists global banks, UBS, Citi,
Barclays, Morgan Stanley and Commerzbank as some of its <a href="https://www.financemagnates.com/terms/l/liquidity/">liquidity</a> suppliers. </p><p>

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This article was written by Solomon Oladipupo at www.financemagnates.com.