USGFX Global, the Vanuatu based offshore arm of Retail FX broker operator USG Group, has issued a statement in which it makes several accusation against BRI Ferrier, the bankruptcy specialist which was appointed first administrator and now liquidator of the bankrupt Australia arm of the group, Union Standard International Group Pty Ltd.

The statement (see full text below), claims that BRI is “misleading and confusing the public”, regarding the interdependency of the now-bankrupt USGFX Australia, and USGFX Global in Vanuatu. (The USG Group also operates an FCA licensed arm in London, also under the “USGFX” brand).

USG Global claims it had “taken the initiative”, to assist clients of the bankrupt Australia company with withdrawal requests, by moving their account balances over to USGFX Global. That, of course, would not be allowed anyway under Australia bankruptcy rules, even if individual clients agreed. All funds of the bankrupt company are now frozen and held with Commonwealth Bank of Australia in trust accounts, and total about AUD $6 million. Once the liquidation process is complete and approved by the Australia bankruptcy court, the funds will be returned directly to clients, and then the clients of course can do whatever they want with that money.

We had broken the story in late January that the USG Group was indeed directly soliciting former clients of the Australia company to move to the offshore usgfx.global site, which keeps client funds at a bank in Puerto Rico. In the statement, USGFX Global accuses BRI of abusing its power, by instructing First Bank in Puerto Rico to freeze USGFX Global’s accounts.

The note issued by USGFX Global does not deal with the more than $100 million of USGFX client funds that BRI believes is missing, solicited over time from clients via USGFX Australia to invest in high interest deposits. Nor does it deal with the contempt of court finding in Australia against the USG Group and its controlling shareholder Soe Hein Minn, by not cooperating with BRI such as providing access to the company’s MT4 and MT5 servers, where client information is resident.

The full text of the note issued by USGFX Global today reads as follows:

8 February 2021

USG Global on the Matter of Processing USGFX Clients’ Withdrawals

The USG Group would like to reiterate that the company in liquidation, USGFX (Union Standard International Group Pty Ltd), is completely independent from USG Global (Union Standard International Group Ltd); this includes its finance management, business development, daily administration management and compliance procedures. Despite being owned by the same parent company, USG Global and USGFX are separate legal entities, operating independently from each other. However, BRI has been misleading and confusing the public with each entity’s independency, for these two entities have almost the same names. We strongly condemn BRI’s behaviors that has caused damages to USG Global’s reputation and financial losses.

USG Global began its operation of the business in June 2020, just before the time when USGFX entered voluntary administration with external third-party administrators assigned. Due to USGFX’s liquidation status, USG Group representatives hold absolutely no control over what happens with USGFX, including its funds and communications with the clients. However, USG Global had taken the initiative to establish a withdrawal program to assist with the withdrawal requests from the USGFX’s clients who agreed to trade to USG Global. This breaks the norm of “clients not having a penny back once the forex broker has entered liquidation.”

However, BRI abused its power and instructed First Bank in Puerto Rico to freeze our accounts, for the two companies share almost the same names. Not only did this behavior cause negative impacts on the progress of USG Global assisting with the withdrawal requests made to USGFX, but also severely affected USG Global clients’ rights.

USG Global would like to take this opportunity to bring this matter to all the traders’ attention and hopefully the world can see who has been trying to help with USGFX’s clients. You can have our words that as long as USG Global still stands in the forex market, we will continue to take the responsibilities to resolve the problems, rather than wasting money and resources on war of words. With regards to the troubles caused by having almost identical names between USGFX and USG Global, the Group has made the decision to accelerate the rebranding process in order to give clients a more stable trading environment.