Forex, which the
Financial Markets Authority issued a warning about in August,
has been placed in liquidation.
Foreign exchange software company Phoenix Forex was the New
Zealand distributor of the OakFX foreign exchange trading
system, which customers paid up to $25,000 to access.
At the end of August, the FMA warned the public about doing
business with the Auckland-based company or buying the OakFX
"The FMA believes that Phoenix Forex's claims about the level
of returns made by its trading system are untrue, and that
Phoenix Forex is misrepresenting the profitability of, and
risks associated with, its trading system," the regulator
Phoenix Forex has now been placed in liquidation, according
to the Companies Office.
Documents show Jared Booth and Tony Maginness from McDonald
Vague, an insolvency and business recovery firm based in
Auckland, have been appointed as liquidators for the company.
The pair will take control of the company's assets and sell
them to repay creditors.
The first liquidators' report will be released this week,
Booth told the New Zealand Herald.
Last week, businessman Mark Raymond Brewer, who was
associated with Phoenix Forex, avoided home detention for
breaching the conditions of his second bankruptcy.
The OakFX system is no longer being sold in New Zealand.
- By Ben Chapman-Smith
of the New Zealand Herald