US Counsel for AFX Capital unable to reach firm, cannot get money owed

Maria Nikolova

Foley & Lardner LLP, counsel for AFX Capital Markets Ltd., AFX Capital U.S. Corp. and STO Super Trading Online, has received no response to numerous requests over the last two months.

FinanceFeeds has been keeping its readers informed about the latest developments in the adversary proceedings taken against AFX Capital and STO Super Trading Online as a part of the Gallant Capital Markets bankruptcy case in New York. It appears that there are some serious frictions between the defendants and their legal counsel – this becomes apparent from a document submitted at the New York Eastern Bankruptcy Court on Thursday, October 18th.

Douglas E Spelfogel, a member of the law firm of Foley & Lardner LLP, counsel for defendants AFX Capital Markets Ltd., AFX Capital U.S. Corp. and STO Super Trading Online in the adversary proceedings, seeks entry of an order to withdraw as counsel for the AFX Parties.

“Among other things, the AFX Parties have not paid for significant legal services rendered to them and Foley has received no response to numerous requests over the last two months with respect to the same and with respect to matters arising in the Adversary Proceeding generally”, the counsel says.

Foley not only has substantial unpaid invoices with no assurances of or plan for repayment, but has been unable to communicate with the AFX Parties in any capacity.

Foley’s client contact for the AFX Parties is Mario Persichino who is a resident of Dubai and is a representative of defendant AFX Capital Markets Ltd. whose principal place of business is in Cyprus. Accordingly, most communications have been via email, Mr Spelfogel explains. Most recently, on October 9, 2018, Foley advised the AFX Parties by email that if it did not receive an immediate response it would be forced to withdraw as counsel in this matter. Foley has yet to receive any response from the AFX Parties.

Let’s recall that, under the Complaint against AFX, throughout 2015 and 2016, Gallant deposited approximately $2.35 million (for its benefit) into a Gallant account maintained at AFX. Within the two-week period prior to Gallant’s commencement of its bankruptcy case, there was a balance of approximately $2.4 million in the Gallant account at AFX. Around that time, Gallant made multiple demands upon Defendants for the turnover of Gallant’s funds—all of which were disregarded.

Nevertheless, AFX withdrew the remaining balance, without authorization and without basis, on the Filing Date—in violation of the automatic stay. This case involves core issues whereby the Trustee is seeking a turnover of Gallant property and recovery of assets of the Gallant estate, and enforcement of the automatic stay.

The case is captioned Duval v. AFX Capital Markets Ltd. et al (1:18-ap-01038).

Read this next

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

<