The case involving Oasis, a $78 million Ponzi scheme disguised as a foreign exchange investment fund, took a new turn after the court overturned the dismissal of a complaint against alleged co-conspirators, including ATC Brokers.
Burton Wiand, acting as receiver for Oasis International Group, sued foreign exchange and contracts for difference broker ATC Brokers Ltd., the company's co-founder David Manoukian, and Spotex LLC. Wiand alleged that these entities and individuals were involved in fraudulent transfers.
However, the district court initially denied Wiand's claims, citing lack of standing and statutory immunity under the Communications Decency Act. Wiand's actions were aimed at recovering investors' assets. According to the latest court documents, Oasis International Group presents itself as a lucrative opportunity for investors, promising high returns through foreign exchange futures trading.
However, the company was allegedly revealed to be a sophisticated Ponzi scheme, which caused losses to investors due to embezzlement. Oasis operated as a foreign exchange investment fund, promising investors high returns. However, according to the court decision, the company's managers concealed losses, misappropriated funds and paid fictitious income.
Citing the appeal filed in the U.S. District Court for the Middle District of Florida, the court document stated: “We conclude that the district court erred in dismissing the fraudulent conveyance claims for lack of standing.”
“And although the district court correctly concluded that Wiand lacked standing to maintain the tort claims, it erred in dismissing those claims with prejudice and should not have addressed the issue of immunity statutory.”
Legal status and allegations
Incorporated in England and Wales, ATC Brokers facilitated Oasis' trading activities, while Spotex provided software to present the alleged fraudulent returns to investors. Wiand's lawsuit targeted these entities, alleging their complicity in the scheme's operations.
The court added: “As a registered foreign exchange broker, ATC Brokers was required to conduct due diligence before onboarding potential traders. ATC Brokers' services enable licensed and approved overseas investment entities to trade on the London Markets on behalf of their underlying investor clients. »
ATC Brokers' approval of Oasis' forex trading accounts and its provision of liquidity allegedly enabled Oasis to engage in high-risk trading activities. With leverage of 100:1, Oasis made substantial bets, ultimately leading to significant losses, the court heard.
The case involving Oasis, a $78 million Ponzi scheme disguised as a foreign exchange investment fund, took a new turn after the court overturned the dismissal of a complaint against alleged co-conspirators, including ATC Brokers.
Burton Wiand, acting as receiver for Oasis International Group, sued foreign exchange and contracts for difference broker ATC Brokers Ltd., the company's co-founder David Manoukian, and Spotex LLC. Wiand alleged that these entities and individuals were involved in fraudulent transfers.
However, the district court initially denied Wiand's claims, citing lack of standing and statutory immunity under the Communications Decency Act. Wiand's actions were aimed at recovering investors' assets. According to the latest court documents, Oasis International Group presents itself as a lucrative opportunity for investors, promising high returns through foreign exchange futures trading.
However, the company was allegedly revealed to be a sophisticated Ponzi scheme, which caused losses to investors due to embezzlement. Oasis operated as a foreign exchange investment fund, promising investors high returns. However, according to the court decision, the company's managers concealed losses, misappropriated funds and paid fictitious income.
Citing the appeal filed in the U.S. District Court for the Middle District of Florida, the court document stated: “We conclude that the district court erred in dismissing the fraudulent conveyance claims for lack of standing.”
“And although the district court correctly concluded that Wiand lacked standing to maintain the tort claims, it erred in dismissing those claims with prejudice and should not have addressed the issue of immunity statutory.”
Legal status and allegations
Incorporated in England and Wales, ATC Brokers facilitated Oasis' trading activities, while Spotex provided software to present the alleged fraudulent returns to investors. Wiand's lawsuit targeted these entities, alleging their complicity in the scheme's operations.
The court added: “As a registered foreign exchange broker, ATC Brokers was required to conduct due diligence before onboarding potential traders. ATC Brokers' services enable licensed and approved overseas investment entities to trade on the London Markets on behalf of their underlying investor clients. »
ATC Brokers' approval of Oasis' forex trading accounts and its provision of liquidity allegedly enabled Oasis to engage in high-risk trading activities. With leverage of 100:1, Oasis made substantial bets, ultimately leading to significant losses, the court heard.