The Federal Court of Australia has issued an order in the case of the ongoing USGFX bankruptcy, demanding that the lawyers representing parent company Union Standard Group International Holdings Limited (“USG Holdings”), Juris Cor Legal, respond to the court on various matters including the previous contempt of the court’s orders and the whereabouts of their clients – in particular USGFX group controlling shareholder Soe Hein Minn.

Juris Cor Legal is an Australian law firm that specializes in Australia-China business and relations. No response has been forthcoming from USG Holding’s lawyers to date.

The USGFX appointed liquidators, BRI Ferrier, also pointed out that the court order issued by Justice Lee of the Federal Court of Australia justifies the liquidators ceasing to perform any further work regarding the closing out of USGFX open client positions. BRI said that it had sought these orders primarily due to the obstructive conduct of the shareholder. The liquidator stated, as we have previously reported, that USG Holdings, controlling shareholder Soe Hein Minn, and/or parties acting for them, actively prevented its access and control of the MT4 and MT5 trading platforms, such that BRI was unable to give effect to the technical close out of open client open positions as required by ASIC’s AFSL conditions.

BRI Ferrier noted that a separate legal application is currently being formulated to deal with how the various classes of competing creditor claims at USGFX can be quantified. This application is anticipated to be heard in the coming months.

The court order of Justice Lee was critical of the conduct of USG Holdings and Soe Hein Minn, where they remain in contempt of Justice Yates’ previous court orders, by failing to provide the liquidators required access to the MT4 and MT5 platforms, amongst other matters. Justice Lee has directed USG Holdings’ lawyers, Juris Cor Legal, to respond to the court on various matters, including the previous contempt of the court’s orders and the whereabouts of their clients.

The court order demands the aforementioned actions be taken by the end of business today, December 18.

BRI Ferrier is still busy sorting through client and creditor claims at USGFX. The administrators are making attempts to sell the USFX client list, as creditor claims climb. The USGFX Australia bankruptcy may include more than $100 million of missing client funds. Separately, regulator ASIC has sued USGFX and two of its introducing brokers, EuropeFX and TradeFred.

We will continue to follow this story as it develops.