High Court grants FMA application to appoint receivers to Christchurch FX trader

Thursday 28th May 2015

The High Court in Christchurch has granted an application from the Financial Markets Authority to appoint receivers to Christchurch company Arena Capital, trading as foreign exchange services provider BlackfortFX.

The decision granted yesterday afternoon, follows the FMA obtaining an asset preservation order over the company due to concerns investor funds may be at risk.

Grant Graham and Neale Jackson of Korda Mentha have been appointed as receivers and managers of the company and will identify the assets held, client names, and the value of any investments held in Arena/Blackfort. They will also shortly write to known local investors who are thought to number in their hundreds rather than thousands. The FMA is encouraging any Arena investors to contact Korda Mentha.

The receivers will report back to the court and the FMA on the steps they have taken and the current status of their investigation by June 18.

Jimmie McNicholl is the shareholder and sole director of Arena Capital according to the Companies Office. The company is registered on the Financial Service Providers Register and purports to offer foreign exchange services to clients.

McNichol’s director consent form lodged with the Companies Office was completed by Lance Jack Ryan who in 2005 was convicted of welfare fraud after stealing the identities of five dead people.

The FMA said it had received complaints from overseas investors who had lost money in other forex companies and service provides operating abroad with FSPR registration, prompting a crackdown on the veracity of companies on the register. So far this year 23 entities have been removed from the register and a further 20 have been stopped from registering.

BusinessDesk.co.nz

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