Chilean authorities have frozen the assets of Santiago based money manager trading foreign exchange IM Forex despite the company loudly protesting in a press release and claiming the money was to be used to repay clients. With the allegations against the brokerage surfacing some months ago, a group of clients has been actively looking for ways to recover deposits at the brokerage.
After Finance Magnates reported on IM Forex and its alleged connections to a massive $75 million Ponzi scheme in March, the developments for the brokerage have not been very favorable. Police reports at the time suggested that the Ponzi Scheme invested client funds in foreign exchange trading with the firm.
The most recent developments are continuing to pile pressure on the brokerage. The company’s funds have been frozen by authorities which say that litigation is pending. In the meantime clients have been active in their efforts to recover their funds by hiring a prominent local lawyer to defend them.
the level of lies that IM Forex has been telling is appalling
Local lawyer Barbara Salinas has recently stated in an interview with a local newspaper that “the level of lies that IM Forex has been telling is appalling.”
In the meantime the company has been attempting to distance itself from the pending litigation via issuing press releases with the latest one stating that authorities are conspiring against the firm and the frozen funds were to be distributed to clients.
The statement issued by IM Forex reads that the firm has every reason to believe that “there is a black hand which is looking to take the market from companies like ours.”
there is a black hand which is looking to take the market from companies like ours
According to IM Forex, local authorities have failed to prove any wrongdoing three times and the withholding of the $1.8 million of funds is hampering the firm’s relationships with clients.
“Our company was going to pay client dues with these funds but they have been frozen by our bank for 4 weeks unjustly with the expectation that Fiscal investigative authorities are going to obtain an order to seize the funds”, the firm’s press release stated.
Back in March, the CEO Victor Pantoja issued a statement claiming that the accusations against the brokerage are unjust and that the firm has been cooperating with authorities.
the company has continued bending the truth
In the meantime the lawyer of a group of clients, Barbara Salinas, elaborated on the recent actions of the authorities: “After seizing $8 million from the company, the court determined that the confiscation of further $4 million was not justified. In our conversations with the investigative authorities they have made clear that the company has continued bending the truth and has been making everything possible to deter clients from taking legal action to recover their funds.”
"IM Forex submitted to authorities the $8 million voluntarily because its CEO Victor Pantoja has been pressured by authorities with two options: to wire the funds to authorities or face charges in a lengthy legal battle which was not unlikely to be decided in his favor. This is the only “good will” that the company has demonstrated,” Mrs Salinas explained.
Whether IM Forex will be faced with a lengthy legal battle remains to be seen. The court is going to look at the case in the coming weeks.
