The boss of Foreign Exchanged Limited, Frank Deal, has received a 12-year ban for abusing the funds of clients entrusted to his company. Financial investigators revealed that the violation of funds (a total of £2.5 million) occurred from October 3013 to October 2016. The investigation asserted that the director did a lot of unscrupulous deals with clients’ funds entrusted in the company’s care.
The exchange company was formerly known as Yenom Incorporated Limited. It began a business in September 2003 and became liquidated in September 2017 after entering administration the previous year.
The company started having financial difficulties almost immediately after it was incorporated. The way and manner of the company’s liquidated led to an investigation into its financial dealings. A financial investigator on insolvency was appointed to investigate before making their findings known to the Director.
31 customers filed complaints
Before the investigation, there have been a series of reports and filed claims from some customers of the liquidated exchange. About 31 customers had already filed a formal complaint to tell the police that the fund they transferred through the exchange’s portal never reached the receiver. They also claimed that Foreign Exchange Limited never sent the funds back to them.
Similarly, some customers have also revealed that Frank gave them fake bank transfer receipt, which showed transfers that never really happened.
Last month, a 12-year ban was drafted by the Secretary of State, stating that Frank Deal was disqualified from owning or managing any company within that period. The CEO of the bankruptcy service, David Brooks, said that the former clients of the exchange service knew there are risks involved when investing.
But they never expected that the risk would come from the director of the company. The customers never thought the director could be the culprit of what happened to the company. The director’s conduct made many to lose thousands of dollars.
According to Brooks, the 12-year ban will stop Frank from creating further damage in the industry. It will also serve as a warning to other directors to stay off financial misconducts that will put customers’ funds at risk.
In relation, the insolvency service has asked the public from conducting businesses with him, or any other company or association he represents.
This disqualification or ban does not include court proceedings. People disqualified will be restricted from doing similar businesses or holding any position that will put customers at risk of losing their money. It means that for 12 years, Frank Deal cannot head an organization, promote, or run a business.
It is unclear whether all the company’s customers would be able to get their funds back. But this may be unlikely, considering that the company is no longer in operation.