Crown Forex loses control

On December 11th, the FPA sent out an email linking to an article warning traders about some major issues with Crown Forex. We've just gotten confirmation that a week or so later, the Swiss Federal Banking Commission has appointed two investigators to take control of Crown Forex and look into the problems with the company.

Announcement about SFBC investigation (in French)

We've run this through a couple of translators. It appears that the officers of Crown Forex are forbidden to take any legal actions or to sign any binding documents without the countersignature of at least one of the investigators. The SFBC investigators apparently can sign such things without anyone else's countersignature. This would effectively strip Crown Forex's officers of any direct authority.


We also have a copy of a translation of an email sent from the SFBC to FPA member Joa. Joa was conducting some of his own investigations into the trouble other FPA members were having getting money back from Crown.

Dear (name omitted)

In response to our e-mail dated 16 December 2008, we would like to present to you the following information:

As already informed, the Crown Forex SA, Bassecourt has no authorization by the Swiss Federal Banking Commission (SFBC) for an activity in the financial sector in Switzerland.

To clarify the existence of the authorization requirements, in cases of suspected law violations or suspected pursuit of activities without proper authorization and in danger of insolvency, the SFBC investigators have to clarify the facts to use.

For the SFBC, acting in such cases, a superprovisional decision is available for use of an investigation officer. These investigators are charged with the investigation of the business activities of the company and are to report to the SFBC. The investigation officers are equipped with all necessary power and as such they appear in the commercial registry. They can act now on behalf of the firm. That is the case for the Crown Forex AG with superprovisional order as of 9 December 2008 (published in the Gazette on 18.12.2008) were Mr. Laurent Winkelmann, Chêne-Bougeries and Mr Philippe of Bredow, Célignym, investigators to the Crown Forex SA, were appointed.

On the basis of the report of the investigation officers the SFBC will make a decision and, where appropriate, publish it on its website. At the moment we can offer no further details. You or your contacts in the U.S. are invited to contact us again at a later stage.

Yours sincerely

Secretariat
SWISS FED. BANKING COMMISSION

This indicates that investigators are assigned like this to deal with companies that have cases of suspected law violations or suspected pursuit of activities without proper authorization and in danger of insolvency. We aren't sure which of these possibilities triggered the appointment of investigators to Crown Forex. Any one of them is bad.


Under these circumstances, the FPA would recommend the most reasonable course of action would be to not place any money with Crown Forex. If you have money with them, we recommend withdrawing it immediately. If these issues can be resolved to the SFBC's satisfaction and the money owed to traders is returned, then we can change the recommendation.


The original warning from the FPA about problems at Crown Forex



Update: We wish to extend our deepest thanks to FPA Private Joa for going far above and beyond the call of duty investigating this case. We originally mis-identified him as one of those who was having trouble getting money back from Crown, since there were so many FPA members involved already.
 
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Joa

Private, 1st Class
Messages
157
correction

I am not one having trouble with Crown Forex. As a member, and me being Swiss, I took it upon me to run my own little investigation. To me it was a matter of trying to help the members since I might get information here much faster than anyone. I know Forex trading for the better part of the last 30 years and I've seen many scammers come and go. When I saw the complaints, I just KNEW something was up with that company. Sadly enough, I was proven right.
The letter published above is correct in its entire length. In that letter the SFBC made the investigation known
The publication in french that was posted in another thread is not the announcement of an investigation but rather just the published fact that now the SFBC has control and the other officers are forbidden to transact or sign any legally binding paper on behalf of Crown - unless they have one of the investigators countersign.
It was on may part only a matter of solidarity with my fellow traders. As some of you know, I had posted a few things about Crown and I did add my personal opinion as well.
It was countered by a member of Crown Forex SA - a somewhat brazen act to pull the cap over the eyes of the members of this team here, considering that the decision of the SFBC was already made on the 9th of December. The 18th of December was simply the publication date. Such things need a few days before the public corporate registry can process the papers that were submitted by the SFBC.
I truly hope we all caught this one at an early stage. All funds on deposit, if then so still around and available are SAFE since the SFBC took control.
I still recommend that members with funds at Crown Forex immediately demand payment, or renew their existing request. It might be helpful to send a copy to the SFBC as well. This way the certainly realize the seriousness of the violations by Crown.
It would be a novelty in Switzerland if Crown would ever obtain a license. The fact of this "receivership" (for lack of a better term) will most likely lead to the demise of Crown Forex.
Good luck to everyone.
 

habu

Recruit
Messages
3
Swiss Firms

I wish all who are having troubles with crown the best of luck. I had funds in another swiss company, neuimex, and after almost two years I finally got an e-mail that said I MIGHT get 20% - 25% back, but still no time line.

I always thought swiss companies to be of the highest standards but with two swiss companies going bad, I think I will just stay in the USA.
 

Joa

Private, 1st Class
Messages
157
Swiss companies

I beg to differ here
Anyone can establish a company in Switzerland. A company by shares like an AG or french SA (Societé Anonyme) is nothing special.
What tells you something is the officers and directors. There are some minimum requirements of course, and one officer must reside in Switzerland.
Then you look at the rest, and you discover that the heads of the company reside in some foreign country like Jordan or Lebanon and it gets you thinking and it triggers a closer look - at least that is my reaction.
Knowing Swiss corporate law to a degree, and you see, when you check the corporate registry, that every year the auditor resigned - now that is a RED FLAG. You always want a longterm relationship with an auditor for pure practical reasons. At the youthful age of 16 I started a company with my Dad, and to this day, more than 40 years later, we had all of three auditors........

Just be thorough, don't just trust the advertising and a nice website. Some due diligence must be done always. That is why I stick with the likes of Dukascopy or Saxo - there I KNOW they are regulated and have a history - even when their customer service in English might suck :)
 
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Pharaoh

Colonel
Messages
19,743
Wow! I knew they had issues, but thought they were just trying to pad the books to make it look like they had more cash on hand. This looks a lot worse.
 
Messages
20
Re-Crown Forex loses control

This is a job well done and more grease to your elbow. I want to state here that to my dismay I still come across the Crown Forex's advertisement placed on the website belonging to the Action Forex.

This is an affront to all civilized society which culminates into an absolute insult to our collective interest and aspiration, therefore the FPA must as a matter of urgency act accordingly to further nail its coffin.

Once again well done, while the struggle must continue, because it is not over until it's over, for hope and confidence are gradually creeping back to the forex business.

Best regards.
 
Messages
20
Re-Crown Forex loses control

This is a job well done and more grease to your elbow. I want to state here that to my dismay I still come across the Crown Forex's advertisement placed on the website belonging to the Action Forex.

This is an affront to all civilized society which culminates into an absolute insult to our collective interest and aspiration, therefore the FPA must as a matter of urgency act accordingly to further nail its coffin.

Once again well done, while the struggle must continue, because it is not over until it's over, for hope and confidence are gradually creeping back to the forex business.

Best regards.
 
Update

The FPA has received additional information directly from the the SFBC.

Crown Forex SA commercial activity had to be suspended, its management is not allowed to speak or act for the company. This right is reserved to the investigators. It is currently not possible to withdraw money from Crown Forex SA accounts.
We definitely recommend against depositing more money with Crown Forex until this is resolved. It looks like it may take time if you wish to withdraw any money from an account with Crown Forex.
 
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