Firm’s license said cancelled about year and a half ago
KUWAIT CITY, July 21: From money laundering to fraud and falsehood, financial issues have emerged on the scene where hundreds of citizens are victims. They are victims of an e-trading company that collected millions of dinars and sold them illusion, reports Al-Qabas daily. Lawyer Fahd Al-Basman announced that he will file a complaint with the Public Prosecution against this company for its involvement in fraud, falsehood and money laundering, noting it continued working on social media despite the cancellation of its license about a year and a half ago.
He declared the concerned online trading company had defrauded hundreds of clients inside and outside Kuwait, adding it was able to collect millions of dinars since the beginning of its activity in 2016 and declined to return the sums to traders, dozens of whom filed lawsuits against the company recently.
Al-Basman stated that on March 27, 2019 Capital Market Authority’s commission issued a recommendation, addressed to the president of the authority, to take necessary measures against the company based on research operations carried out by the commission.
On March 31, 2019, a decision was issued by the authority to cancel all company licenses from the Ministry of Commerce and Industry, while the Capital Markets Authority had previously canceled 3 license certificates for some of the company’s activities, the first on June 30, 2016, the second in October 2017 and the third in January 2018.
He explained the recent cancellation decision came upon discovering violations committed by the company in promoting some activities as “licensed by the Capital Markets Authority”, and marketing them through communication sites in violation of the decisions of the authority and its regulatory laws.
He pointed out that those operations included currency trading and issuance of recommendations to buy and sell, which led to the company reaping huge funds despite the fact that securities traded through those electronic platforms were dubious in their authenticity due to the existence of some imaginary purchases.
The clients did not obtain investment certificates to prove their ownership of the shares, as well as trading in shares without the permission of the commission, which is considered a crime punishable by law.
He pointed out that the company’s violations also included hiring people in the name of account managers whose task is to communicate with clients and urge them to buy or sell and enter into deals based on information without having a document confirming their validity, a measure prohibited under the law establishing Capital Markets Authority.
It was like one of the violations that led to the cancellation of the license, because directing investors to buy or sell is prohibited, as it is fictitious trading. Either the customer is attracted to purchasing in the event of gain or alienating the company and selling on the basis of false news, exposing himself to losses. From 2016 until the license was canceled, the company collected millions of dinars from hundreds of customers.
Account managers would inform clients after depositing the amounts that they had achieved gains of up to 50% of their capital to make them believe there is another opportunity for greater profit, and to request returns on investment and more money in securities and other operations, thus the company could collect new money that reached double the amount of the first deposit.
He pointed out that when some clients wanted to withdraw their money with profits, they were surprised by the procrastination and evasion, despite the decision to cancel the license stipulated that the company is obliged to hand over the clients’ money and assets. “What is worse is that the company still practices its activities through the means of communication and expected new victims after it licensed a new company outside Kuwait, although it is not allowed according to the authority’s law of trade or creating platforms whether in the local or foreign papers within Kuwait”.
Al-Basman stated the continuation of promotion campaigns and the occurrence of new victims as a result of the company’s actions that violate the law of Capital Markets Authority, which constitute a crime of fraud, falsehood, and money laundering is behind the submission of the complaint.