The Hong Kong Court of First Instance has granted interim orders against Maxim Capital, which operates under the brand name Maxim Trader, in relation to legal proceedings, initiated by the Securities and Futures Commission (SFC), or the local financial watchdog, the commission said on Friday.
The interim orders will remain in force until the trial of the proceedings, the date of which is yet to be announced.
“Interim orders were granted to restrain Maxim Trader from holding out as carrying on regulated activities whilst unlicensed and to suspend its websites that have been promoting the carrying out of regulated activities […],” the watchdog noted.
About a month ago, the Court ordered the freeze of Maxim Trader’s bank accounts in Hong Kong with some $23.5 million in total, and to restrain it from providing unregulated financial activities. The FSC said at the time the broker has been carrying out business activities and advertised them in Hong Kong without being issued license by the SFC, which is a violation of the local regulations. Moreover, it added, the broker claims in ads it has been licensed in New Zealand and regulated in Belize.
The SFC initiated legal proceedings against Maxim Trader after its investigation, which is still in progress, found that the broker has tried to obtain $111 million from more than 130 Hong Kong citizens in a number of investment schemes since 2013, promising them to pay monthly returns of 3%-8%. The broker has stopped any payments to investors since July this year and has informed them their investments have been converted into shares of a company, which SFC considers worthless.
Maxim Capital operates under the brand name Maxim Trade and via the websites www.maximtrader.com, www.maximtrader.biz, www.maximtaiwan.com and partner.maximtrader.com. Our research showed none of these websites is active. The broker is registered in the Seychelles and does not have a forex broker license.
The SFC is in charge of the licensing and supervision of financial intermediaries that operate on the Hong Kong market. We strongly advise you to only deal with regulated forex brokers, authorised by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.
Source: SFC
Shahid Nadeem
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