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DanFX director has swindled millions of dollars from traders over 13

DanFX director has swindled millions of dollars from traders over 13

created Paweł MosionekAugust 2 2018

The former director of DanFX Trade Pty Ltd (DanFX) has been found guilty of extorting over $ 13 million, an Australian court said. As a result, the fraudster was sentenced to 2,5 years in prison, but he will serve a much shorter sentence ...

Over 200 injured traders

In 2017, Australian financial supervision, ASIC, initiated proceedings against Daniel Farook Ali, then director of the Danfx brokerage company. The suspicions concerned primarily the conduct of an unregistered investment program, thanks to which Ali managed to collect up to 13 million USD from over 200 investors.

On July 23, 2018, the Australian Court ruled that Daniel Ali, DanFX and two related entities, DanFX Investment Holdings and D&S Ali Properties, operated an unregistered financial program without the required authorizations. Thus, the provisions of the Commercial Companies Act were violated. Additionally, Ali broke the law by managing DanFX and its affiliates, even though he had already been convicted of fraud, which prevented him from holding such positions.

The court decided to impose a lifetime ban on the accused from taking up positions in corporate management, providing financial services and conducting credit activities. All three entities mentioned above were liquidated, and the court sentenced Daniel Ali to 2,5 years imprisonment. Nevertheless, the sentence is to be suspended after the first six months.

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About the Author
Paweł Mosionek
An active trader on the Forex market since 2006. Editor of the Forex Nawigator portal and editor-in-chief and co-creator of the website. Speaker at the "Focus on Forex" conference at the Warsaw School of Economics, "NetVision" at the Gdańsk University of Technology and "Financial Intelligence" at the University of Gdańsk. Twice winner of "Junior Trader" - investment game for students organized by DM XTB. Addicted to travel, motorbikes and parachuting.