CWM FX issues statement as website remains down and Chelsea FC drops it as a sponsor


Dramatic incidents such as the recent raid on London-based CWM FX’s offices by City of London Police are, thankfully, rare occurrences, however when the law enforcement agencies are compelled to enter the premises of an electronic trading firm, undoubtably its customers are likely to be concerned about the future of their accounts, and more importantly, the likelihood that they will be able to recover their deposits.

Chelsea FC logoA high profile and all-encompassing litany of news articles by mainstream British media organizations ensued, largely because even those who do not necessarily operate within the FX industry may well be partially familiar with CWM FX, as it became a sponsor of Chelsea Football Club in January this year.

Just a few weeks after CWM FX’s offices became the target of police scrutiny, its website was taken down, its broker technology solutions provider Leverate canceled its agreement with the firm, and Chelsea FC removed CWM from its list of sponsors.

The company’s response?

LeapRate has been provided with a corporate statement by the firm, which reads as follows:

CWM is launching a strong rebuttal against police allegations that the company is connected to fraud.

Earlier this week, details of a raid on CWM’s London offices in the Heron Tower were leaked by police. Thirteen members of staff were arrested on March 3rd and the London office was searched. In a highly unusual police press statement, an appeal was made to anyone who had invested in an opportunity connected to CWM to get in touch. The police claimed they were trying to stop ongoing criminality.

CWM, which is a strong global brand operating a respected group of companies, is concerned that the police strategy will potentially cause unnecessary alarm amongst clients and staff.

CWM believes it has been unfairly associated with “Operation Broadway”, a police clampdown on “boiler rooms” carrying out suspected investment frauds. The operation is being led by City of London police and involved raids earlier this month on 21 premises, 20 of which are not connected in any way with CWM.

Police issued a list of tell-tale characteristics of boiler rooms, including companies which do not display their name in reception areas; unruly staff working unusual hours, using false names and reading from pre-prepared scripts; staff using a false company name or multiple company names; companies making upfront payments and choosing short-term leases.

CWM, in start contrast, has a ten-year lease on level 21 of the Heron Tower. The deposit paid and fit-out costs represent a substantial long-term commitment by the group. CWM is running a legitimate business. CWM staff work normal office hours from eight o’clock in the morning. The company name and branding is displayed throughout their offices. All companies have the same CWM branding to keep a corporate look. All staff are paid through PAYE and National Insurance and have normal contracts. Conversations are always recorded and there is no high-pressure selling by the company or its staff. CWM is regularly visited by its clients at its offices and continues to welcome its clients with open doors.

Prior to City of London Police’s arrival at CWM premises, CWM had received no complaints from its clients. Unfortunately, the police have imposed bail conditions prohibiting those arrested from contacting CWM clients. This is a cause of great concern to CWM’s management and staff.

CWM has built a global brand and its management are determined to protect the welfare of 300 staff in London, hundreds of staff overseas and CWM’s clients.

CWM believes it has been the victim of a malicious campaign waged against it by persons who harbour a grudge against the Company.

In these circumstances CWM is seeking legal advice from corporate lawyers and is working hard to put in place arrangements to enable clients to contact CWM to allow them to administer their accounts. This will enable them to register their confidence in the company and to be kept appraised of important developments.

 

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CWM FX issues statement as website remains down and Chelsea FC drops it as a sponsor

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