An American man was a director at Singapore-based agency Aureus Capital when he turned the primary individual operating a fraudulent foreign currency trading scheme linked to it.
The scheme concerned greater than $18 million from over 1,300 shoppers.
On April 15, Michael Philip Atkins, 51, pleaded responsible in a Singapore district court docket to carrying on a enterprise for a fraudulent goal. This got here 10 years after he was first arrested right here in 2014. He jumped bail subsequently. In March 2023, he was extradited from the US to Singapore.
Deputy Public Prosecutor Hon Yi instructed the court docket that Atkins, who was a majority shareholder of the agency, had full management of the scheme which used solely a fraction of the shoppers’ monies for foreign currency trading.
The prosecutor added: “The scheme was run within the fashion of a basic ‘Ponzi’, the place the purported returns to shoppers have been paid utilizing the funds from different shoppers… Such a enterprise mannequin was clearly unsustainable and… the corporate lastly imploded.”
In the long run, the shoppers acquired round $12.7 million in whole from Aureus Capital they usually suffered almost $6 million in losses.
DPP Hon urged the court docket to condemn Atkins to as much as three years and eight months’ jail, including: “In impact, the scheme was his and all losses brought about to the shoppers of Aureus should be straight attributable to him solely.”
Between April 2013 and July 2014, Aureus Capital provided leveraged international alternate buying and selling providers and schemes.
Shoppers entered into agreements permitting Aureus Capital to have interaction in foreign currency trading on their behalf.
Underneath these agreements, the corporate can be entitled to 40 to 50 per cent of the earnings generated from the buying and selling, whereas the losses from buying and selling can be totally borne by the shoppers.
On the time of the offence, Aureus Capital maintained two buying and selling accounts with Oanda Asia Pacific, a separate firm which gives international alternate buying and selling.
Shoppers have been instructed that Auereus Capital would handle their funds by buying and selling foreign exchange on Oanda, stated DPP Hon. They have been instructed to switch money right into a checking account.
The checking account acquired greater than $18 million in whole from shoppers between April 2, 2013, and July 15, 2014.
As an alternative of utilizing the quantity for foreign currency trading, greater than $14.7 million was used for different functions, reminiscent of paying Aureus Capital’s administrators, together with Atkins.
Solely round $1.7 million of the greater than $18 million was deposited into Oanda, the court docket heard.
Weekly statements despatched to shoppers hid the truth that solely a small portion of shoppers’ funds was used for foreign currency trading.
The weekly statements additionally reported earnings which weren’t reflective of precise buying and selling outcomes. Actually, Aureus Capital was making losses on its Oanda buying and selling accounts.
Based on the shoppers, they have been instructed on June 13, 2014, that Aureus Capital wanted to stop buying and selling because it was buying a banking licence.
The shoppers didn’t obtain any cash after they requested for his or her investments to be withdrawn.
Subsequent e-mails from the corporate claimed that it was being rebranded, and that every one shoppers’ monies can be refunded by July 28, 2014.
Shoppers alerted the police when the corporate and its administrators turned uncontactable quickly after. Atkins was arrested.
An Interpol pink discover was issued in opposition to him after he jumped bail. Such a discover requests regulation enforcement items worldwide to find and provisionally arrest an individual pending extradition, give up or different authorized actions.
He was traced within the US in 2017 and an extradition request was despatched to the authorities there three years later.
He was efficiently extradited to Singapore and re-arrested right here on March 18, 2023.
Atkins will likely be sentenced on April 25.
