Genesis11 Shutdown Following A UK Court Ruling

Genesis11 Shutdown Following A UK Court Ruling

Volumes of online accounts investing under Scothop Limited will remain closed following a court order. The United Kingdom brokerage popularly known as Genesis11 received the order from the High Court of Justice, Business and Property Courts in England and Wales.

The ruling was a result of violations witnessed at Genesis11. The brokerage established itself as a regulated online broker whereas its incorporation was a serviced office provider in 2019.

Jones, an ICC Judge, gave orders on June 21, 2022, following a petition initiated by the Secretary of State for Business, Energy, and Industrial Strategy to reinstate the company.

Genesis11 crowned itself the capability to trade different instruments on behalf of investors.

The judge admitted that the financial firm “traded without commercial probity” and received funds on a false aspect from investors.

In a statement, the Chief Investigator for the Insolvency Service, Okhiria, argued that Genesis11 led astray the investors by “illegitimately securing thousands of pounds whilst falsely claiming to be regulated.”

In the research findings done by The Insolvency Service, Geness11 caused consequential losses to the clients in their investments. The Insolvency Service engaged Genesis11 privately following vigorous complaints from investors.

Genesis Of The Fall

Genesis11 tricked its investors by displaying an increasing number of returns to motivate them to inject more capital into the investments. The Liquidation Administrator confirmed in its investigations.

The investors incurred substantial fees and their investments were reduced in value whenever they attempted to make withdrawals.

“Scothop Limited would cease contact with investors if they continued to remove funds or did not pay the fee,” the Service added.

The investigations by the Service also revealed that funds claimed to have been kept by Genesis11 in third-party accounts were held in individual accounts. Those individuals were neither part nor registered members of Genesis11.

Moreover, the Service disclosed at least £263,000 lost by seven investors through unregulated business activity.

However, the Court appointed the Official Receiver of Public Interest Unit of the Insolvency Service as the liquidator. The receiver has been tasked to recover the funds and compensate the investors.

Genesis11 “acted with a lack of transparency.” as Jones ruled.

The step to shutdown Genesis11 was a way to curb institutions with a mission to follow the same trend.

“We hope this outcome serves as a warning to other rogue investment firms that we have the necessary powers to put a stop to unscrupulous misconduct,” Okhiria added.