By Paul Blanchard
Published: November 19, 2021
The MultiBank Group, one of the world’s largest and foremost online financial derivatives brokers, is at the final stages to commence proceedings against the Von der Heydt Group of Germany.
Unanimously chosen as the Most Trusted Global Broker by Global Business Review Magazine and Best Global Broker by the renowned Finance Magnates Magazine, the MultiBank Group is one of the world’s leading financial institutions dealing in foreign exchange and contracts for difference. MultiBank Group saw a record financial performance in 2020 with an annual turnover of over US $5 trillion and gross profit of over US $139 million.
In an unprecedented move, the MultiBank Group offered to pay German Noteholders their funds which were diminished as a result of unlawful actions by the Von der Heydt Group. MultiBank Group emphasizes that it has made the offer to the Noteholders benevolently, albeit, it has no obligation to do so.
MultiBank Group was established in California in the United States by CEO and sole owner Naser Taher, in 2005, with headquarters in Hong Kong. Since inception, MultiBank Group has evolved into one of the largest online financial derivatives providers in the world, combining prime liquidity, cutting-edge technology, and first-class customer service. They deliver advanced trading platforms and tight pricing for online financial products, including Forex, Metals, Shares, Indices, Commodities, and Cryptocurrency CFDs.
The lawsuit by the MultiBank Group against Von der Heydt Group stems from illegal transactions in mutual funds undertaken by the Von der Heydt Group in breach of European Regulatory Framework; these actions have been found to be illegal by the Luxembourg Regulators, the CSSF.
From 2017 to 2020, the MultiBank Group entered into a Joint Venture Project with VDH Group. MultiBank Group invested over EUR 43 million in the Joint Venture Project based on representations and promises made by VDH Group, and its CEO, Michael Gollits. During the period of the project, VDH Group failed to disclose to the MultiBank Group and other investors in the project that its trading and investment activities were unlawful and in breach of Luxembourg and German regulations.
In 2018, the investment took a sinister turn. The German police raided the offices of a money manager in Berlin on suspicion of Ponzi scheme and alleged conspiracy to defraud investors amid coordinated searches in Germany and Switzerland. Stephan Blohm, then the CEO of VDH Group in Luxembourg, was a main suspect and faced criminal charges while managing the funds of VDH Group.
The VDH Group also failed to reveal adverse findings of the Supervisory Commission of the Financial Sector in Luxembourg (CSSF) as confirmed in a letter dated 14 October 2020, in which the CSSF references 12 “severe deficiencies in relation to the functioning of the Funds,” ranging from inability to provide the auditor sufficient and to deficiencies in the valuation of assets, to failure to abide by counter terrorism and anti-money laundering laws. Those findings relate to the resignation of KPMG as the auditors of the VDH Funds in spring 2020. Subsequently, a number of investment funds of the VDH Group were suspended as a result of CSSF intervention and their valuations were downgraded substantially in early 2021.
Moreover, Michael Gollits used VDH clients’ money on highly leveraged contracts for differences on precious metals which are banned under EC Law for certain investment funds and caused substantial damages and losses. Perpetrating a pyramid scheme, Gollits then took commissions for VDH Group on his illegal trading which were paid out of clients’ money he invested.
Meanwhile, in the British Virgin Islands, VDH Group intervened as Claimants in proceedings against one of the MultiBank Group subsidiaries (“MBF”) regarding one of their investment funds. The intervention of VDH Group in the BVI appears to be a last-ditch attempt to distract their investors from their unlawful activities. Justice Adrian Jack made a recent judgment in the High Courts of the BVI, that found that Michael Gollits had told untruths to the MultiBank Group about the illegal trading in the notes, deliberately lying about the illegality of the project.
Justice Jack has been accused of bias and abuse of power in another recent case by the BVI’s Speaker of the House Assembly, Julian Willock. Julian Wilcock accused Justice Jack of interfering with the legislative arm of government and abusing his judicial powers. (Lawyers for Julian Willock have made a court application for Justice Jack to recuse himself because of his personal friendships with local BVI politicians, and have evidence that he “wrestled” the case away from another Justice.)
During an interim hearing, Jack J erroneously made detrimental findings against one of the subsidiaries of the MultiBank Group (“MBFX”) and its officers at an interim hearing only. There has been no trial or final determination of the allegations. Jack J did not hear any witness evidence and did not make any final findings of fact concerning MBFX. Evidence will be considered at a trial of these Proceedings which is not scheduled to be heard before July 2022.
MBFX says that Jack J, during the interim hearing, have made arbitrarily and/or unfairly failing to hear the evidence of MBFX. Moreover, the Judge disregarded and failed to apply the procedural safeguards which are mandatory for an interim hearing and has misread and misunderstood the evidence before him and there was apparent bias on the part of the Judge and that during the appeal, it is most likely that the findings and the order of the Judge shall be set aside.
MultiBank Group boasts a daily trading volume of over US $7.2 billion and provides services to an extensive client base of over 320,000 customers from across 90 countries worldwide. They are composed of several companies regulated by trusted financial bodies worldwide.
Already, MultiBank Group has launched MEX Digital; it’s a global digital asset exchange that offers trading in more than 20 of the world’s top cryptocurrencies. The group has also set up MEX Pay, an electronic money institution offering online banking for both individuals and businesses, enabling customers to trade and bank in traditional currency as well as cryptocurrency.
“The MultiBank Group through its substantial expansion worldwide including the formation of a complete financial ecosystem involving financial derivative and crypto with all ancillary services is now paving the way for the MultiBank Group to undertake a SPAC within 3 years with estimated value of US$ 25 Billion” states Naser Taher, chairman of Hong Kong-headquartered MultiBank Group, as he explains his vision for a full-service financial derivatives and digital assets exchange that offers credibility and trust.
Please see the most recent coverage of the MBG here, recent growth and their exciting plans for the future as cited in Forbes.
Forbes - Nov 16, 2021: MultiBank Group believes a full-service cryptocurrency exchange from a trusted brand will bring much-needed credibility to the sector