GTL Tradeup, an Australian FX Broker Goes Belly Up Down Under
Australian FX broker, GTL Tradeup has filed for bankruptcy. The regulated FX broker contacted the regulator on the 25th of
GTL Tradeup (GTL), a regulated financial services’ firm in Australia has decided to call it a day. The move comes on the back of a notice issued by the firm to the Australian financial watchdog about its intention to place the brokerage into liquidation.
The news comes as no surprise to both clients of GTL and industry professionals who are familiar with the firm’s past performance. The the owner of GTL, Mr Mian Mehmood, repeated an episode of history, where the firm packed up and left (from its Pakistan office in the early 2000’s) as soon as it collected enough client money. In this case, past performance should have been an indication of future performance – a leopard never changes its spots.
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Contrary to the famous saying by George Santayana, “Those who cannot remember the past are condemned to repeat it,” it’s believed that the GTL owner ‘bagged’ a big one with the aid of the ASIC regulation, used as a front in his latest financial incident.
The Sydney based firm, who also holds regulatory status in Dubai and Karachi sent an email notification to its clients, informing them of the firms brave move to go into liquidation. Unlike its previous case, the firm had the courtesy to let people know that they have been duped.
GTL Trade has not responded to email or calls.
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The email, which was sent by the firm’s customer services department, requested clients to close out all their positions by 7 a.m. Australian time, on the 26th of September. Failure to do so will result in the positions being automatically terminated by the firm.
The notification states, “We request you close off, and all pending orders not cancelled by the Market on Close (MOC) United States session of today (day email was sent), September 25, 2013, being 7 a.m. Australian Eastern Standard Time September 26, 2013, then all open positions will be automatically closed at market price, and all pending orders will be cancelled. Trading will be disabled from 7 a.m. Australian Eastern Standard Time September 26, 2013. The GTL Tradeup website will be shut down within 48 hours.”
The latest broker related concern doesn’t help the FX industry’s perception. GTL Tradeup follows a similar stance to UK spread betting firm WorldSpreads. A listed broker who was shut down by the regulatory after discrepancies in client money.
GTL Tradeup will provide its clients with details of the firm which is dealing with the liquidation.
On the firm’s Facebook page, a message from GTL Tradeup uploaded on the 25th of September, states, “Been told GTL Australia is insolvent and we are all out of a job. My heart goes out to our clients who will have to try to get their funds back from DMCC Dubai.”
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Why Dubai? Was the money not held in Australia?
did they got too crazy on book B?
The right conclusion is:
REGULATION GIVES YOU THE FALSE AND MISLEADING SECURITY THAT A BROKER IS ACTING IN A SOPHISTICATED AND EXPERIENCED WAY.
REGULATION IS SIMPLY A TOTAL AND UTTER FARCE!
please post asic response. how much funds total is there?
Relevant:
http://www.thenational.ae/news/uae-news/italy-seeks-dubai-man-in-us-36m-fraud-case
Mahmood appears to be quite the sleazebag.
A blog has been put up regarding the GTL Tradeup liquidation. Hopefully some news will be come out soon.
http://gtltradedown.wordpress.com/2013/09/26/gtl-tradeup-liquidation-announced/
Mahmood Riaz
(Chairman)
GTL Tradeup Pty. Ltd – Australia
http://www.linkedin.com/pub/mahmood-riaz/21/488/a31
For more details on this criminal enterprise named Gtl Network,visit:
http://fratebatacchio.blogspot.it/
Geez how badly does this make ASIC look?
Anyone with a modicum of sense should have done due diligence on these clowns.
As soon as they setup in Australia it stood out prouder than a honeymooners cock that this was going to be the end goal.
A simple google search brings up a trail of setup and then later dissolved companies worldwide among other questionable practices.
For a client its almost forgivable but for a regulator (ASIC) it absolutely beggars belief how they even let it get to this stage.
A few people across in Dubai are saying the GTL brand and Mr Riaz are moving across to New Zealand.
If New Zealand regulate him or any associates from GTL then the country is a complete joke (if it isn’t already).
He has also wasted a lot of money in FarmAll Technology http://www.farmalltechnology.com/about.html
were they regulated directly with ASIC?
What i would like to know, is it legal under ASIC client money rules to transfer client assets to a firm in Dubai? This website suggests just that:
http://gtltradedown.wordpress.com/
If that is true, ASIC regulation looks like a joke. Maybe ForexMagnates can clarify with a compliance expert?
My investment was with Velocity Trade in New Zealand which was sold to gtl under the pretence of a joint venture. Do I have recourse against Velocity Trade?
any word from the Karachi regulator ?
If you reference the abundance of information available you will see that the revenue of GFT was very strong, this can be attributed to strong risk management. There were never reports of large losses or poor risk metrics. A sudden change in regulatory enforcement combined with a poorly situated cost structure seemed to be the culprits that lead to the acquisition according to all public data. I am not sure how the leap is made to poor risk management from the data available, but it’s clearly not a factual statement.
If you reference the abundance of information available you will see that the revenue of GFT was very strong, this can be attributed to strong risk management. There were never reports of large losses or poor risk metrics. A sudden change in regulatory enforcement combined with a poorly situated cost structure seemed to be the culprits that lead to the acquisition according to all public data. I am not sure how the leap is made to poor risk management from the data available, but it’s clearly not a factual statement.
NZ
http://www.business.govt.nz/companies/app/ui/pages/companies/4053458
good luck finding anyone at home
https://maps.google.com.au/maps?q=58+Albyn+Road,+Strathfield,+Nsw,+2135+,&ie=UTF-8&hq=&hnear=0x6b12bb18bbe38791:0xf9814a8efe140f1a,58+Albyn+Rd,+Strathfield+NSW+2135&gl=au&ei=s_JEUqGKE4X-4QS-j4CQCg&ved=0CC0Q8gEwAA
Re: Andy As per ASIC RG212 regarding the use of client funds. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg212-9July2010.pdf/$file/rg212-9July2010.pdf Permitted uses of, and withdrawals from, client money accounts RG 212.10 A licensee may make payments out of a client money account in the following circumstances: (a) making a payment to, or in accordance with the written direction of, a person entitled to the money; (b) defraying brokerage and other proper charges; (c) paying to the licensee money to which the licensee is entitled; and (d) making a payment that is otherwise authorised by law or pursuant to the operating rules of a licensed market. RG 212.11… Read more »
looks like in the month of july,Mahmood Riaz was involved in another huge fraud.Capricorn fxg 10 funds was allegedly swindled out of $ 26.6 million by BVI domiciled Global Tradewaves Ltd.
http://fratebatacchio.blogspot.it/2013/09/jp-fund-group-vs-global-tradewaves-ltd.html
http://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/17984-gtl-trading-dmcc-15.html
@Sid – Velocity Trade Limited (NZ FSP# 20003) is a member of the Financial Dispute Resolution. It wouldn’t hurt to contact the FDR and lodge a formal complaint.
http://www.fdr.org.nz
http://www.business.govt.nz/fsp/app/ui/fsp/version/searchSummaryCompanyFSP/FSP20003/18.do
http://www.business.govt.nz/companies/app/ui/pages/companies/1943456
And fwiw, Velocity’s registered office is the office of this law firm: http://www.buddlefindlay.com/
Jafar Calley: thanks for the info.
Inside whispers say that it seems the director of the failed GTL Tradeup may well have taken himself off as director on Monday before the shame went down on Wednesday?
I received an email from Lee Spark(gtl tradeup GM) Quote: “please be aware that I am also as keen as you to follow every legal avenue in regards to this matter and having any wrong doing brought to the courts. Like ASIC I confronted Mahmood Riaz about the articles on Italy and was shown legal documents clearing him of any charges. I, like you have also been put at a financial loss and wait to hear how the insolvency will be handled. Since the news I have had no access or correspondence with Andrew Jeffers (the director) who still runs… Read more »
Thanks side I’m also on this page and happy to quote myself directly without you having to email me and then pass it on leetsp@live.co.uk. LIke everyone else on this page I have this matter at the forefront of my to do list to make sure clients and employees of GTL get the result they deserve and that the repocussions from ASIC and any legal entities that may be brought in are taken to the max for all involved in this shameful situation.
News coverage on GTL Tradeup in the Australian Financial Review (you’ll need an account to access):
http://www.afr.com/p/business/companies/gtl_tradeup_goes_into_liquidation_QuQl9PbOFvI8kvduBmqc2L
GTL registered the paperwork yesterday for ‘involentary insolvency’ and their chosen company was Warner Kogel whom they met and signed off with on Monday in the CBD. Ap[art from that and an email to the client base telling them that this was the case everything is up in the air until an expected response from Warner Kogel before or around the 4th. Not much from ASIC although i do know they have had conversations with X employees about certain relationship agreements. Owners of GTL according to ASIC register is The conway Family Pty Ltd which is we believe owned by… Read more »