In a significant legal development, AGP Law has successfully secured an out-of-court settlement in favour of its client, after proceedings had been raised against a Cyprus Forex Company.
The basis of the claim included among others, causes of action that the forex company was engaging in abusive, misleading, and fraudulent activities, leading to the loss of our client's entire investment, of over €100.000. The case, as well as the settlement with the Defendants, highlight the importance of safeguarding the rights of investors and holding financial institutions accountable for their actions.
The lawsuit filed on behalf of our client, alleged that the Defendants, a licensed Cyprus Investment Firm (CIF), violated the client's rights under Directive 2014/65/EU of the European Parliament and the Markets in Financial Instruments (MiFID II) Regulations. These Regulations implemented in Cyprus by the Investment Services and Activities and Regulated Markets Law of 2017, set the standards for investment firms' conduct and protect the interests of investors.
The court pleadings revealed a series of abusive and fraudulent practices employed by the defendant and its representatives, to persuade our Client to invest and subsequently lose his funds. Key evidence in our client's possession, was the correspondence with the Defendants, which clearly demonstrated the organized and systematic nature of the deceptive tactics employed by them.
Throughout our client's engagement with the Defendants from January 2021 to June 2021, our client interacted primarily with two representatives of the Defendants, who acted as his Account Managers. These representatives consistently urged our client to invest more money, promising substantial profits and assuring him of their ability to generate wealth.
Despite our client's lack of experience in trading, the defendants' representatives disregarded his concerns and encouraged him to deposit significant sums into his trading account. They provided improper, misleading, and fraudulent advice, leading to substantial losses for our Client. Additionally, the representatives engaged in forceful tactics, pressuring our client to fund his account further and open multiple trades, ultimately resulting in significant financial losses.
One particular incident exemplified the deceptive practices employed by the defendants when they instructed our client to add more funds to his account to proceed with risky trades. As a result, our client's account balance rapidly shifted to a negative balance of -€20,000. After his complaint to the Defendants, the representatives attributed this loss to a "supposed technical error" but failed to provide any satisfactory explanation or remedy.
Recognizing the gravity of the situation, our client filed a claim, seeking compensation. After a series of consistent and lengthy negotiations, while the court proceedings were advanced concurrently, the case has been finally settled out of court, and successfully secured the return of over 70% of his total investment, as well as legal costs.
Cases such as this, set an important "precedent" in holding investment firms accountable for abusive, misleading, and fraudulent practices. It highlights the significance of investor protection, and it serves as a reminder that individuals have the right to seek legal recourse when their rights are violated by financial institutions.
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