The Australian Securities and Investments Commission cancelled its Australian financial services licence (AFSL) after an investigation.
ASIC found Yoshai was involved in Forex CT’s trading floor culture, an environment that had been likened by former account managers to ‘The Wolf of Wall Street’, where a bell or a gong was rung when clients deposited funds of certain amounts into their trading accounts and account managers could participate in incentive ‘games’ such as ‘wheel of fortune’, roulette tables and dice games to win cash if certain client deposit targets were met.
The Court found Forex CT engaged in a system of unconscionable conduct by:
ASIC found Yoshai was involved in Forex CT’s trading floor culture, an environment that had been likened by former account managers to ‘The Wolf of Wall Street’, where a bell or a gong was rung when clients deposited funds of certain amounts into their trading accounts and account managers could participate in incentive ‘games’ such as ‘wheel of fortune’, roulette tables and dice games to win cash if certain client deposit targets were met.
Yoshai put pressure on account managers to implement high pressure sales tactics when engaging with clients, offer incentives to clients to encourage deposits, recommend trading strategies that would increase a client’s exposure to the market, pressure clients to deposit funds into their trading accounts, and pressure clients to delay or cancel withdrawal requests.