$138m investment scam had Australian financial license
ASIC is investigating an Australian company that gave financial licensing to a group suspected of defrauding investors of about $138 million.
An Australian firm called Main Group FX looked real to investors. It had a financial license.
More than a dozen Australians invested in the scheme. The scheme had fake Caribbean addresses and a famous cricketer as ambassador.
The CEO was allegedly linked to terrorism. ASIC is now looking into MGF Capital.
This Sydney company gave the financial services licence. MGF Capital's sole director is Matthew Starkey, a former Goldman Sachs trader.
The company issued the licence from February to December 2023. During that time, Australian investors lost more than $2 million through Main Group alone.
Total losses are feared at as much as $138 million. MGF Capital denies any due diligence failures.
- $138 million
- Total feared losses
- February to December 2023
- Licensed period
- Sydney
- Licensor location
Why it mattersThe case shows how financial licensing can be misused to give fraudsters credibility. This leaves ordinary investors with no safety net.
AustraliaAustralian investors lost millions to the scheme and ASIC's investigation may tighten rules around how financial licensors vet their authorised representatives.
✓ Claims checked against the source. checked 2 h ago
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