Hantec Markets wins as UK judge tosses $42M lawsuit
FCA regulated retail FX and CFDs broker Hantec Markets won the dismissal of a $42 million lawsuit made against the company by Jordanian investor Hafez Fakhri Taki Al-Farouqi.
Mr. Al-Farouqi, who comes from a wealthy and prominent Jordanian family, had sued Hantec and another UK-based broker, Ikon Finance, late last year. His original account had been with Ikon Finance, which in 2017 sold its client base to Hantec Markets after Ikon lost its FCA authorization.
Mr. Al-Farouqi claimed in his lawsuit against the companies that he did not consent to the transfer of his account from Ikon to Hantec. He also claimed that he was charged unauthorized commission and introducer fees by the companies. And, as the main point of his claim, Mr. Al-Farouqi stated that Hantec closed his account in February 2019 without providing him reasons, or providing reasonable notice, which resulted in the crystallization of $34 million of trading losses.
However UK High Court Justice Amanda Tipples dismissed the suit against Hantec and Ikon last week stating that the facts lined up in the brokers’ favor. The Honourable Mrs Justice Tipples stated that it was “fanciful” to believe that what caused the losses to Mr. Al-Farouqi were “faked trades” by the brokers, as he claimed.
She also noted that the evidence showed that Mr. Al-Farouqi knew about his trading losses, which had grown from $10 million to the noted $34 million while his account was at Hantec.
The judge also agreed with the brokers’ claim that no commissions or fees were charged to Mr. Al-Farouqi’s account.
An Ikon Finance spokesperson told legal website Law360.com that the company was now going to seek to be reimbursed for its court costs, given the judge’s clear ruling against Mr. Al-Farouqi’s version of events.