Giambrone & Partners financial fraud litigation department has extensive experience in mounting successful legal challenges to fraudulent investment companies and effectively restoring our clients' lost funds. Our lawyers' tenacious approach to wrongdoers has led to a group litigation case against Cypriot based investment firm, Rodeler Ltd. trading as 24 Option.
24 Option or its parent company Rodeler Ltd. no longer have a presence in the UK. The company is registered in Cyprus and sought authorisation with Cyprus Securities and Exchange Commission (CySEC) which enabled it to obtain passporting rights through CySEC and the Financial Conduct Association (FCA)to gain a presence to trade in the UK. However, 24 Option breached a considerable number of regulations when pressurising novice investors whilst purporting to assist them to engage in risky trades that were revealed to amount to fraudulent trading, resulting in the FCA taking action and preventing 24 Option from conducting any regulated activities or any marketing activities to persons in the UK. Amongst other provisions included within the decision were:
- the closing of all trading positions:
- notifying all its clients that it could no longer provide investment services and returning all balances held by the firm;
- displaying a notice on its website stating that it was not permitted to provide regulated financial services to resident of the United Kingdom.
The FCA pointed out that as a firm registered in Cyprus the Authority considered that the firm had contravened its clearly defined obligations under the Markets in Financial Instruments Directive (MiFID), implemented under Cypriot law. Concluding that its failure to carry out appropriate assessments together with its marketing materials which the FCA found unclear, misleading and unfair and use of fake celebrity endorsements to persuade the unwary novice investors that it was a respectable organisation supported by notable individuals, warranted all its requirements to be effective immediately. The FCA believes that UK investors may have lost hundreds of thousands of pounds investing in contracts for difference (CFD) investments suggested to them by 24 Option.
CySEC followed the FCA lead by also preventing 24 Option from trading. The Italian regulator the Commissione Nazionale per le Societa e la Borsa ("CONSOB") has prohibited Rodeler Ltd. from attempting to offer investment opportunities in Italy.
Despite the financial regulators in three countries withdrawing Rodeler Ltd's ability to provide investment opportunities, it implausibly attempted to suggest that the firm itself had cancelled its registration.
Joanna Bailey, head of the financial fraud litigation department, stated "24 Options were very well aware that there are strict regulatory constraints related to advising novice investors, such as the obligation to establish suitability and appropriateness before advising a client in any aspect of investment. Suitability requirements include checking the client's knowledge and experience, their financial situation, and their objectives. Appropriateness requirements also includes understanding the client's relevant knowledge and experience in certain financial instruments" Joanna further pointed out "regrettably, 24 Options completely ignored these provisions and encouraged novice investors to trade in one of the most challenging types of investment, contracts for difference (CFD), a type of investment that is risky even for the most experienced investors, amongst other precarious financial products, The group litigation action planned is the best option available for the victims of 24 Option to recover their lost funds."
Despite the FCA imposing the requirement to liquidate their positions into pounds sterling and return cash balances held by any of their clients' resident in the UK, this has not taken place. It is considered unlikely that the parent company Rodeler Ltd. will adhere to the FCA's decision and voluntarily return the funds belonging to their victims without being legally forced to do so.
If you were targeted by 24 Options and lured into trading CFD and have lost your money you can join the group litigation action and through strength in numbers, successfully obtain compensation. Our talented financial fraud lawyers have the experience, expertise and evidence to win and force the wrongdoers to provide the compensation you deserve.
To sign up to be part of the group litigation action and attempt regain your lost funds please click here
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