Creditors Now Claim that Phoenix Forex Owes Them $2 Million

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Creditors Now Claim that Phoenix Forex Owes Them $2 MillionCreditors of the former New Zealand retailer of the OakFX forex trading system have now increased the amount of their claims to $2 million, up from $300,000 that they were claiming in 2013.

The Auckland-based Phoenix Forex sold the contentious foreign exchange trading software and used to charge clients up to $25,000 to access the platform.

The FMA warned members of public against engaging in any transactions with Phoenix Forex in August last year, saying that the company was not providing the true information concerning the profitability and risks associated with its currency trading system.

This saw the company being placed into liquidation in October last year, with the first batch of creditors pressing for $300,000 in claims. The second report that was released on Monday by the company’s liquidator Jared Booth indicates that creditors are now demanding to be paid $2 million.

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Inland Revenue revealed that the company owes it $1.44 million, while the company’s clients are demanding $448,774. Trade creditors say they are owed $124,148.

According to the New Zealand Herald, Booth said that liquidators, on the other hand, say that Restaurant Limited owes them $402,401. Restaurant Limited, which owned the Brownstone Restaurant and Cocktail Lounge in Auckland’s Ponsonby Rd, is currently being liquidated.

Phoenix Group Ventures, which is associated with Kendall Twidgen, owns Phoenix Forex and holds shares in Restaurant Limited.

The liquidators of Restaurant Limited said that Phoenix Group Limited owes the company $109,118 for food and drink. FMA warned the public last year about OakFX after she travelled out of the country with entrepreneur Mark Brewer, who has been previously bankrupted twice. Brewer was a senior salesperson at Phoenix Forex. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com