IntegrityFX blamed its demise on connectivity problems and bridge outage; wiped out client balances and then disappeared – Investigation
Just a few weeks ago, FinanceFeeds conducted an investigation into the recent activities of retail FX brokerage IntegrityFX after it came to our attention that the company had taken its website offline and had ceased to respond to customer withdrawal requests. The company, which claims to be registered in the UAE but according to sources […]
Just a few weeks ago, FinanceFeeds conducted an investigation into the recent activities of retail FX brokerage IntegrityFX after it came to our attention that the company had taken its website offline and had ceased to respond to customer withdrawal requests.
The company, which claims to be registered in the UAE but according to sources which have been partners and IBs of the company, this is not really the case, had taken its site offline and placed a notice stating “This site is now under maintenance” on the domain at which its commercial site was hosted approximately one month ago.
Today, FinanceFeeds has received further information with regard to this matter, in that IntegrityFX, whilst failing to respond to client withdrawal requests for over a month and having told one particular IB “There is nothing that we can do for you” that it is responding to certain IBs and direct customers by inferring that connectivity problems and outages with regard to the firm’s MetaTrader 4 bridge provided by oneZero are the cause of the company’s difficulties.
FinanceFeeds advises all IBs and direct customers to approach this with caution and to consider whether this is really the case, or whether this is a justification for the company’s pre-meditated intention to disguise the method by which it evaporated client funds.
Today, a notification from a client to an IB in the Far East which had an IB relationship with IntegrityFX, explained to FinanceFeeds
“We have invested money with a Forex broker called “Integrity Ltd” aka “IntegrityFX”.”
“We have signed an Introducer Agreement with them a few months back and we have 2 clients that deposited their money with this particular broker. We’re Forex traders, so we started trading the 2 accounts invested in the clients’ names respectively, with Integrity FX. It all went well for the first few months, however just about over 2 months ago we started experiencing problems with their servers/bridges to their servers and from thereon we couldn’t exit, place or amend any trades placed in the financial market.”
“We immediately informed them about the problem, they were very slow to respond to our requests and in the meantime we couldn’t do anything with the client accounts. The clients started to lose money, we’ve contacted the president of the company, however to no avail. Eventually they sent out a letter to clients explaining that they are experiencing problems and that they are working to resolve the issue, this was on the 30th October 2015.”
“In the meantime our clients decided to withdraw their money to avoid further losses. After a while we had no connection to the server/bridge at all and we can’t see balances or get access to anything. The IntegrityFX website also went down and isn’t active anymore! We’ve contacted them numerous times and they haven’t responded back to us up to now since the last communication from them on the 30th October 2015.”
“We have many screenshots and correspondence records we had with them, however we heard nothing, get no communication or answers from them anymore (since the 30th October 2015). We’re now in a position where we’re very scared that the money deposited with them is now at risk and they’ve defrauded us. No information, no communication and no correspondence from their side, they Bank with “Emirates NBD”, however we believe that the President of the company resides in the United States of America (in Los Angeles, California)”
Information on the company and its president is as follows:
To deposit funds by bank wire, print the Integrity Ltd. bank account details below and take them to your bank for processing.
Bank: Emirates NBD – GROUP HEAD OFFICE BRANCH
Address: Baniyas Road, Opposite Dubai Creek Tower, Deira, Dubai UAE
Beneficiary: Integrity Ltd.
Account Number: 0514866759301
Swift Code: EBILAEAD
Western Union Money Transfer:
Riverside, California 92508 USA
Western Union® Number. 108 098 514
Integrity Ltd. P.O. BOX 31291, Ras Al Khaimah, Dubai United Arab Emirates
President & Founder
Server IP address for Live Accounts: 18.104.22.168:443
The IB continued to explain “As you can see above, exact same situation as you described. We had around $15,000 + invested with them and have got no communication from Timothy or the rest of the staff.”
“What can one do in such a situation? I mean I’ve already contacted the Ras Al Khaimah Investment Authority, but I have no idea if they would be able to do anything. I understand that Timothy himself lives in Los Angeles, are there any authorities we can approach in the USA, would you know?”
“This is blatant fraud if they did use the deposits of clients as operational money or personal use. The 2 clients we have invested with them are furious and wants their money back from us, so we’re in a difficult situation right now.”
“Worst is, Timothy has visited South Africa and had a meeting with one of our clients that invested around $40,000 with IntegrityFX which we traded, at some point this year the client decided to withdraw the money because they were building a house, they put in a withdrawal request and it was eventually actually honoured. Unfortunately the other 2 clients we have invested with them weren’t that lucky.”
A day after the website went offline, an IB explained that one particular client had lost $80,000 as a result of this.
Indeed, it most certainly pays dividends to work only with regulated companies in bona fide jurisdictions, whether a retail client, and perhaps more importantly, an IB who is responsible for the safekeeping of client funds when sending them to a broker.