FPA Forums and Reviews Admin
Broco won't be back.
Broco won't be back.
Brocompany.com, better known as Broco, has had a colorful history.
In 2010, the SEC filed charges...
The Commission's complaint alleges that BroCo Investments, Inc., its president Valery Maltsev, and/or individuals acting in concert with them hijacked the online brokerage accounts of unwitting investors using stolen usernames and passwords and subsequently placed unauthorized trades through the compromised accounts to manipulate the markets of at least thirty-eight issuers between August 2009 and December 2009.
Mauritius suspended their license in 2010 and cancelled it in 2011...
Notice is hereby given that, pursuant to Section 74 (5) of the Financial Services Act 2007, the Global Business Licence of BroCo Investments Inc. has been revoked with effect from 14 October 2011.
Furthermore, pursuant to Section 74 (7) (b) of the Financial Services Act 2007, the above company has been directed to dissolve its business, discharge all its liabilities and also to dispose of all its investments in an orderly manner.
This morning, I got a link from an FPA member connecting to a post on another forum saying that Broco has announced that it is shutting down. Before writing this, I cross-checked and found the same information on Broco's forum.
From CEO: Termination of Broco
Dear Clients of Broco group of companies!
Me, Valeriy Maltsev, CEO of the company, have to inform you about termination of Broco company from 00.00, July 25 of 2012 year.
From the previous week Ministry of Internal Affairs of Russia conducted search in “Broco” (requisition of equipment, interrogation) within the framework of criminal proceedings against Broco about suspect in fraud.
All suspects are based upon a few claims of our former clients who traded in the company in 2008 – 2009 and lost money in the result of trading.
All clients had been trading for months, did a lot of trades which is proved by trading statements.
One more charge is that we worked without license on that period of time (Russian Federal Financial Markets Service and FSC are not accounted for some reason) and that we could not conduct trades at international markets (ignoring work with ECN platforms CQG, NT, Currenex and case with SEC USA which testifies about 100% presence of clients' money on international exchanges)
For the last 2.5 years it was the 4th wave of searches in the company. Every such wave took away all work equipment, servers and part of trained employees who scared such actions. Every such wave made us lose our investors.
In every process there is a moment when we lose all our power to cope with efforts aimed to destroy the company. So do we.
Over the last 2,5 years upheavals experienced by the company were too big but every time we tried to recover all processes and tried our best not to make clients suffer. However SEC-related resonance, tough actions inspired by competitors, the last serious of bankruptcy of US prime-brokers and the last wave of searches taking away almost all resources drew a line under “Broco”
Till the last moment I supported and encouraged our employees in the hope that troubles will end and we can continue smooth work. We were not allowed to do so. From July 25 99% of Broco's staff will be fired. I know that there is no fault of them in this situation.
From July 25 we will stop activity of all companies framing Broco Group. Brokers and technical support will not be available. From 2.00 am Moscow time clients of the company can only close trades. On Friday all trades of clients will be closed.
Since there will be no access to support systems, we can only receive requests of clients in writing to the company's address. I will publish address and samples of documents. Personal area and web-sites of the companies will work till July 27.
Forum of the company will work on a permanent basis. Please monitor the news on it.
Broco is more than just a company for me personally. It is my life and therefore I ask all clients, affiliates, contractors and employees to forgive me. I did not manage complicated situation, despite the fact I did more than possible.
All important information will be published on forum.
The second post in that thread indicates that withdrawals can now only be made in writing...
for requests for withdrawal
Russia, St. Petersburg, post office box - 210, be called for Valeriy Valerievich Maltsev
zip code: 197371
Your letters will be left on the post to called for Valery Maltsev personally and number 210 means that letters are addressed to him.
If you can, duplicate address by printed Russian address: 197371 г.Санкт-Петербург, а/я 210 Мальцеву Валерию Валерьевичу.
All requests are only submitted in writing, by post
UPDATE: More information has been added to the posts in Broco's forums. There is now a format for written withdrawal requests...
Form of request
To CEO of BroCo Investments Inc.
(Full name of client and account number)
Me, _____________________ (full name) as client of BroCo Investments Inc., BT 08 application dated as ____________________ (date of application) As per above-mentioned agreement, below accounts were opened for me:
At the moment of submitting this request, the amount of money recorded on above-mentioned accounts is _________________________ (amount of money and currency of payment)
Herein I request to send money funds reserved at trading accounts of the company using below payment details:
(state your bank account details, or Web Money details, or Liberty Reserve number)
__________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ _______________________________________
your name ___________________________ signature /_________________/ ____________ date
I'd like to thank FPA member Freddie Freeman for notifying the FPA of this.
SEC Charges against Broco
Broco's license in Mauritius revoked
Termination of Broco Announcement
FPA Review Page for Brocompany.com