CWM Denies Allegations, Continues to Look for FCA Licensed Partner

The company was using Leverate’s license before the partnership between the companies was abruptly terminated, prompting CWM to look for

CWM issued a statement to the media today, recommitting its efforts to strongly deny any allegations made by the City of London police. The authority has connected the firm with fraud in a statement issued on Wednesday morning.

The official authorities warned the public earlier this week against dealing with CWM.

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According to the company statement, “Thirteen members of staff were arrested on March 3rd and the London office was searched. In a highly unusual police press statement, an appeal was made to anyone who had invested in an opportunity connected to CWM to get in touch. The police claimed they were trying to stop ongoing criminality.”

The firm’s view contrasts with local law enforcement as the company states it has been unfairly associated with “Operation Broadway”, which is a police clampdown on “boiler rooms” carrying out suspected investment frauds. The operation is being led by City of London’s police and involved raids earlier this month on 21 premises, 20 of which were not connected in any way with CWM.

A “boiler room” scheme in finance is an operation usually involving unsolicited contacting of investors for the purpose of selling them products and services of questionable value.

Furthermore, prior to the police investigation details were published by the City of London police, investigative research publication Offshore Alert claimed that CWM Group is part of a massive $16 billion Ponzi scheme, orchestrated by the Mauritius-regulated Belvedere Management Limited.

FCA License Partnership

Speaking to Forex Magnates’ reporters, a company spokesperson confirmed that CWM FX was not holding an FCA license. At the time when the company provided trading services, it was using the license of its service provider Leverate.

The partnership between the companies was abruptly terminated in the aftermath of a police raid on the Heron Tower earlier this month. At the time, a company representative denied to Forex Magnates’ reporters any involvement of CWM FX in the raid.

Subsequently, earlier this week, when responding to the allegations made by the City of London Police, a company spokesperson confirmed the involvement of CWM in the police raid with 13 people arrested. While CWM FX has not been implicitly mentioned in any of the statements made by the police, the company still remains affiliated with the CWM Group.

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The company has expressed concerns in its statement about the damage which the strategy adopted by the police could cause to clients and staff of CWM.

Allegations of “boiler room” operations fully dismissed

“Police issued a list of tell-tale characteristics of boiler rooms, including companies which do not display their name in reception areas; unruly staff working unusual hours, using false names and reading from pre-prepared scripts; staff using a false company name or multiple company names; companies making upfront payments and choosing short-term leases,” the statement made by CWM said.

The firm’s communique continues revealing that CWM has a ten-year lease on level 21 of the Heron Tower and that the deposit which has been paid and fit-out costs represent a long-term commitment by the group, which is starkly different from the description of the schemes targeted by the City of London police. The company also stated that it is paying its employees regularly and legally and does not apply any high pressure selling tactics.

The CWM’s name and branding are displayed throughout their offices. All companies have the same branding to keep a complete corporate look.

However, after the City of London published its statement, one of the main beneficiaries from a partnership deal with CWM, Chelsea F.C., removed all the branding of the company from its website after a sponsorship contract was signed between the companies earlier this year.

The firm’s communique obtained by Forex Magnates states, “Prior to City of London Police’s arrival at CWM premises, CWM had received no complaints from its clients. Unfortunately, the police have imposed bail conditions prohibiting those arrested from contacting CWM clients. This is a cause of great concern to CWM’s management and staff.”

Sources close to the company have shared with Forex Magnates’ reporters that senior management personnel were amongst those apprehended. Due to the extraordinary circumstances the company is facing, it has decided to seek legal advice from corporate lawyers.

The firm is in the process of putting in place arrangements to enable clients to contact CWM, allowing them to administer their accounts. This will enable them to register their confidence in the company and to be kept apprised of important developments.

“CWM has built a global brand and its management are determined to protect the welfare of 300 staff in London, hundreds of staff overseas and CWM’s clients,” the statement concluded.

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