GTL Tradeup, a Sydney derivatives broker whose director has been linked to a multimillion-dollar Italian fraud case, has collapsed, owing clients more than $3 million.
About 300 clients in Australia, New Zealand and China are believed to be affected. The clients were informed via email last week of the decision to go into liquidation. Corporate insolvency firm CRS Warner Kugel has been appointed liquidator.
The GTL director who has allegedly been linked by Italian media to a $36 million fraud case – Mahmood Riaz – is in Australia and has been working with liquidators.
Liquidators Anthony Warner and Steven Kugel say the exact amount of money and the number of clients affected by the liquidation have not been determined.
”We’re taking steps to secure the books and records today,” Mr Warner said.
He said Mr Riaz had explained that GTL Tradeup sent nearly $1 million in client money to a ”liquidity provider” in Dubai a few months ago, and that this transaction contributed to GTL’s collapse.
Mr Warner said another GTL-linked company, Global Tradewaves, was also in liquidation.
A meeting of GTL Tradeup creditors is likely to be held next week.