LeapRate Exclusive… Following on our earlier exclusive report on the real story behind the recent happenings at Fortress Prime, LeapRate has learned that the Dubai-based FX liquidity and white label solutions provider has begun processing client payments and refunding amounts owed.
We understand that the majority of Fortress Prime clients have begun to receive repayments, which the company states will be made in full in a series of agreed-upon installments. The first installments represent roughly 25% of monies owed.
However Fortress Prime, and its parent company Fortress Capital Investments, continue to investigate a small number of clients, and the structure and validity of certain agreements the previous Fortress Prime management team had put in place with those clients. Specifically, the company suspects that a certain number of clients were given large credit lines by the previous management team without being required to deposit any margin, and/or were trading on delayed price feeds.
LeapRate has received an exclusive and official statement (see text below) on the situation from Fortress Prime parent company Fortress Capital Investments, and has discussed the situation at length with the parent company in the UAE, which remains dedicated to the Fortress Prime business.
Statement from Fortress Capital Investments
February 11, 2016
Following our most recent statement we are pleased to announce that our accounts department has commenced processing client payments. All clients have been contacted and the great majority has been satisfied. With the implementation of a newly established management team and advisory board, Fortress Prime remains committed to achieving its vision as one of the top tier liquidity providers in the world.
The emphasis now is to build a more solid foundation upon which we can grow a highly sustainable business that will create a significant impact well into the future.
A very small tranche of clients are still under an investigative process reviewing the validity and structure of certain credit lines loosely put in place.
We do not anticipate more than another 7 business days to complete the full review and move forward with our newly developed credit terms, and other policies and procedures to be implemented.
Regardless of what has occurred we cannot stress enough that not paying clients was never an option. On the contrary, we have covered every client’s travel expenses into Dubai and have done our best in providing the hospitality and comfort needed for them through this transitional period.
Our top priority is to grow the business; this path will not be easy to due reputational damage caused by previous issues. It is in our hopes however that with a tremendous increase in transparency, a more competent management team, a comprehensive plan of action, and world-class advisors practicing more of an organic approach rather than forced unsustainable growth, that this will be achieved regardless of the years and effort it may take. We are now reviewing all offers in technology, new products and continue our goals of geographical expansion.
Finally, we would like to thank our clients for all the support and trust they have shown us in the past months.