General Chat

I see the Crown Currency are being looked into by the fraud Squad .
....on 17th November...

Just found it , maybe those that are interested have already read it !!

Well lets wait and see what the out come is for the the unfortunate folks .

I entirely agree.

But without a legal regulatory framework, there is nothing to stop them transferring money into the company accounts, so all rather academic in the end.

Barclays would have checked they were operating within the law (I am a retired Barclays Financial Services manager and have several tee shirts regarding client money rules after 37 years service) even though morally one could argue what they were doing was wrong.

Other side of the coin is that many other customers have benefited from this by getting their currency at less that it would have cost them if they had bought spot. That presumably, is where the losses have accrued.

Had the company made huge profits because the exchange rates had moved in the other direction, then I guess that would have been wrong too in the eyes of some observers.

Until today , I have never even heard of this outfit. But then I have always bought my currency from a bank.

IGP

Segregated accounts are recommend (although not a statutory requirement) for this type of company. This should have rang alarm bells for the potential clients (me included) especially as the directors (husband and wife team) have previously ran a company (conservatory business) which went bust! Previously there have also been delays in submitting their accounts to Companies House. Full accounts have never been submitted, only short versions (limited information) claiming small business exemption. Good companies in this line of business always operate segregated accounts in fact there is one just down the road in Penzance. It must beg the question as to why they chose not to do so!

On the face of it there has been no fraud.

The company were not legally obliged to segregate client funds as they were not operating as a bank or other regulated body. They have simply suffered massive trading losses, from which they are unable to recover, and as such are unable to continue in business.

The worst that could happen is that the directors are charged with continuing to trade, in the knowledge the company was insolvent and unable to meet its debts.

IGP,

It is not true that the monies 'incidentally isn't missing' . This company DIDN'T operate a segregated account for clients' monies therefore all money received was deposited in the company's account and could be used by them for any purpose. When the administers have had time to investigate fully it wouldn't surprise me to see the local fraud squad called in.

Watch this space!

Joanne~~
Having dealt with bankruptcy cases, where the Employer owed National insurance to the Gov, we, DSS were classed as non preferential creditors and general customers came lower down the list than we did !!.. also called non preferential, so with all that debt it's unlikely there will be much of a payout other than to preferential creditors .

But you need to make a claim, hence I gave you the tel no.

Hubby and I made a claim once over a company that went 'bust' and eventually after about 2yrs we did have a payout, so it's well worth a try:)

Sandie.

If that is correct then there will be a minimal payout, if anything at all, as most of whats left will go to pay the administrators - they don't come cheap.....!

Incidentally it isn't missing - there is no suggestion of that. It is down to the way that the business worked.

They would commit to sell you x amount of currency in the future at a fixed price. If they exchange rate goes against them, they make a loss as the currency you get costs them more than you have paid.

Conversely if the exchange rate goes the other way they make money, but that has not been happening recently, hence they are broke.

BBC Radio 5 ...... at 5-30 am today on Money program, administrators initial finding states £20 million worth of orders taken only £3 million left in the bank for those orders ...

There for £17 million deficit MISSING !!!!!

Any orders due to be sent out on the 4th October or later, or any earlier orders not yet fulfilled will not be honoured. Approx 13,000 customers are affected.

The administrator advises it will be at least 6 months before there is likely to be news on how much, if any, might be repaid.

Read in the newspaper today that they have gone into administration, and that customers should contact the the administrators MCR on tel --
0207487 7240,........... if that's any help:)

Sandie.

I had a small amout due yesterday (£500) which hasn't arrived; I'm sort of gutted - just glad it wasn't more x

Just rang two others friends that I know ordered back in August , and theirs also arrived this morning...


Marilyn

Joanne,

Hubby had an order of $ 5000 due for delivery on 14th October he received it today... Wow wasn't he lucky .....so sad for others.

BBC Radio 4 Money Box has described Crown Currency as being in trouble and reports that the company has had its bank accounts frozen by Barclay
in an attempt to protect creditors this is today at 12-10pm.

Marilyn

Check out this site.

http://www.thedibb.co.uk/forums/archive/index.php/t-178856.html

Not sure if it relate exactly to what you are referring ,but sounds like :(

Hi All,

Was just wondering if anyone has heard of Crown Currency; and if so knows anything more about the situation that is going on at the moment??

Lots of customers paid for currency and not received it.

Thanks
Jo