Fortress Capital Investments is preparing to dismantle Fortress Prime, according to information confirmed by Finance Magnates from multiple independent sources. The brokerage company is facing the passing of yet another withdrawal deadline after some of the customers of the company were told that they were going to receive their funds by the end of January.
Fortress Capital Investments, the parent company of Fortress Prime, is said to be offering big clients of the firm approximately $0.25 on the dollar as an initial payment accompanied with a full repayment plan, while smaller clients of the company are to be paid in full. Sources with knowledge of the matter are saying that only clients that hold less than $150,000 with Fortress Prime are eligible for full compensation.
The history of clients’ withdrawal delays from the Fortress Capital Investments owned brokerage started in August and is characterized by multiple postponements and attempts by the management of Fortress Prime to regain credibility. Some sources cite that the company owes between $15 and $20 million to a group of fifty companies in the industry.
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Should the company choose to pay all of those clients that are holding deposits up to $150,000, the majority of the brokerages holding money at Fortress Prime are going to be fully compensated. However, considering the history of the company and the multitude of delays, clients will only be reassured once they confirm their funds are in their bank accounts.
The company’s management recently issued a press release claiming that the firm was being recapitalized in November last year, however this was followed up with another delay and a halt in pricing from the company to its clients. For the clients of the firm, this resulted in some hope that withdrawals would closely follow up, however no payments ultimately materialized.
With the latest batch of delays dating to the end of January and with clients still awaiting their funds, this latest information could be serving as yet another attempt for the company to delay the eventual legal proceedings against it.
A number of clients have been exploring their options of taking legal action against Fortress Capital Investments and Fortress Prime, however for the time being no information about legal proceedings has been confirmed by Finance Magnates.