PremierFX bankruptcy scandal spreads to Mallorca

Published:  14 Sep at 6 PM
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In a follow-up from recent news reports on millions being lost by expat investors in Portugal when a forex trading firm collapsed, details are now coming in about a similar scale of losses by expats living in Mallorca.

The sudden, suspicious collapse of PremierFX Ltd’s three offices in London, Portugal and Palma resulted in Britain’s Financial Conduct Authority’s forcing of the company into administration, leaving hundreds of expats unable to access their funds and completely in the dark as to what happens next. The sudden shutdown of the entire company took place following the death of its MD Peter Rextrew. Subsequently, 200 victims from across the three countries have formed an action group and are demanding immediate answers from investigators.

One Mallorca expatriate retiree in Palma who’s lost €30,000 told reporters she’d been using the company for years without any problems, adding she has no idea where her money’s gone and is devastated. She’d placed an order and transferred the money, and was waiting for an improvement in the exchange rate before completing the transaction. She’s especially keen for any information about the whereabouts of former Mallorca director Nick Jones, who’d sent out an email confirming the financial stability of the firm after Rextrew’s death.

However, according to another victim who was friendly with Jones, the former director has also lost a substantial amount of cash and has been told to keep his head down whilst the investigation is ongoing. He and his family, added the friend, are very distressed, and it’s clear that Jones wasn’t taking over the business after Rextrew’s death. One UK-based businesswoman and friend of Rextrew has lost €400,000 and is furious as she was given no indication of the collapse. She’d been making three monthly transactions using the firm for 12 years, and is now in difficulties along with her clients, especially as she’s heard that certain of the company’s clients were allowed to make transfers via Barclays Bank after the firm had ceased trading.

According to the FCA, the company was operating without having obtained full authorisation, and was forcibly made bankrupt as it was cash-flow insolvent following Rextrew’s death and the appointment of two as his children as directors. Barclays Bank and PremierFX have failed to comment, but an FCA spokesperson told reporters the agency believes criminal activity has taken place as regards the missing funds.
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