A stiff letter from the Premier FX solicitors was recieved by media on Thursday, claiming current Directors, Charlie Rextrew and Katy Grogan, founder Peter Rexstrew's children, have been threatened on social media "fuelled in no small part by misleading press articles, based on assumptions and suspicion, with no evidential material to support the same."
The foreign exchange business shut down on July 27th, leaving hundreds of customers without funds, many losing their life savings and at least one losing the money destined to purchase their Algarve retirement home.
Millions of euros and other currencies are unaccounted for as the Barclays Bank account, which was holding clients' funds, is pretty much empty.
The Solictors letter (see below) arrived on August 30th and represents the first communication from the Directors in the five weeks since the company collapsed. During this five week period, the Directors have notably failed to explain what happened to the business, instead victims have been able to read a Solicitors letter making out that the Directors are the victims.
Smith Partnership claims that Peter Rextrew's children 'did not inherit the business' which begs the question as to who has, or will, inherited the business and also claims that customers and the press have assumed the Directors are guilty, but does not say of what.
Most clients are well aware that the two Directors were appointed after Peter Rextrew's death - what they are guilty of is a massive snubbing of loyal customers by remaining uncontactable, creating an information vacuum and thus leaving themselves open to rumours of their collusion in their late father's suspected embezzlement.
The fact the first sensible communication from the Directors is through a Solicitor makes it clear the contempt those Directors hold for those who have lost their shirts with Premier FX's demise.
By Charlie Rextrew and Katy Grogan approving a letter that makes them out to be the victims in this tragedy, many of the actual victims would agree that 'the pot is calling the kettle 'black.'
Any attempts to contact the Directors 'will be deemed harassment,' apparently. This sort of vague threat would not be necessary had there been a timely and sensible plan of communication with creditors, which also would have led to less speculation in the vacuum created.
The rather extraordinary letter reads as follows:
the SMITH PARTNERSHIP SOLICITORS
Norman House, Friar Gate, Derby, DE1 1NU T: 01332 225 225 DX No. 11528 - DERBY
E: info@smithpartnership.co.uk
To whom it may concern
Date: 30 August 2018 Our Ref: BSA/SW/332576-0001
Your Ref: Please Ask for Bally Atwal
Dear Sirs,
Our Clients: Re: Katy Grogan and Charles Rexstrew Premier FX Limited
We have been instructed by Katy Grogan and Charles Rexstrew, who on the 18 June 2018, were appointed directors of Premier FX Limited (Company Number 05769324) (hereinafter "the Company'), which was placed into administration on 13 August 2018.
In recent weeks our Clients have been subjected to threats of physical violence and abuse, through social media, and direct contact, fuelled in no small part by misleading press articles, based on assumptions and suspicion, with no evidential material to support the same.
Customers of the Company have been advised to direct all enquiries relating to their accounts to the Joint Administrators, PKF Geoffrey Martin & Co of London ("PKF”), which many, again including the press, have incorrectly taken to be an admission of guilt on the part of our clients.
Contrary to reports, our Clients did not inherit the business.
Peter Rexstrew passed away whilst undergoing a heart operation in Portugal. Prior to his death, and our Clients' appointment as directors, Peter Rexstrew was the sole director, and sole shareholder of the Company, which, to the best of our clients' knowledge, (given that they had previously held non managerial roles and in Charles Rexstrew's case, been out of the business for some 2 years), had traded successfully for 12 years.
Following Peter Rexstrew's death, the Company was left without a director. Acting on the advice of the Company's accountants, and believing the Company to be trading successfully, our Clients agreed to be appointed as directors of the Company, to ensure the business continued to trade. The appointments took effect on the 18 June 2018.
Once appointed, our Clients made contact with the Company's bank, Barclays Bank Plc (“Barclays"), with whom all Company accounts are held, to request up to date statements and account information. Prior to our Clients' appointment, all banking matters had been undertaken by Peter Rexstrew.
With little assistance from Barclays, and with limited information, our Clients were unable to reconcile the Company's finances/accounts. Consequently, on 27 July 2018, having consulted with professional advisors, the Company ceased trading. Barclays was notified not to accept, or make any payments from/to the Company's customers. Whilst Barclays did not make any payments out after the 27 July 2018, it is understood they did accept some payments in. Customers who made payments into the account after the 27 July 2018, should email their details to premierfx@geoffreymartin.co.uk, to have their options explained to them - see attached "Customer FAQ document".
Contact was made with the Financial Conduct Authority (FCA) on or around 27 July 2018 and then again on the 30th 2018. FCA subsequently took steps to place the company into administration.
Our clients are cooperating fully with the FCA and PKF, in order for a definitive reconciliation of Company finances/accounts to be produced, again this has been conformed by PKF - see attached FAQ document.
The purpose of this letter is to provide clarity on events which have taken place since out clients were appointed Directors of the Company, and to dispel rumours of any wrongdoing on their part.
Moving forward, any attempts by the Company's customers/creditors to contact our clients and/or members of their family, will be deemed harassment, and appropriate action will be taken, pursuant to the Protection from Harassment Act 1997.
à small minority of customers have threatened or incited physical violence against out Clients. Such conduct will not be tolerated. Details of those threats, and the individuals making those threats, have been forwarded to the Police for investigation, and for the Police to take appropriate action where necessary.
Yours Faithfully
Smith Partnership
______
For a Sky News report, click HERE
Comments
Quoting John Sturridge:
Where did you get at most 4m a year from? Each sales person had a monthly target of 1m so Premier must have been turning over at least 5m a month is they reached targets!
That’s the easiest part of any fraud ( if any ) who else had the permission to move money other than The now deceased .?
I feel very sorry for those caught up in this scandal and I would be prepared for questions about the proof of funds and were the funds fully tax paid .
You will find a lot of people will walk away from this as it is clear very DD was done in this money exchange company ... just my opinion of course ..
As many instances show, where accountants have audited accounts and also supplied other paid services, their professional integrity is open to question. If we look at only one instance, the imminent collapse of Carrillion was hidden from shareholders (and possibly even from incompetent management) by accountants who were receiving audit fees and also consultant fees from the same company.
It has always been a source of wonder to me that the law in Britain allows accountants from the same practice to audit a company´s books, as well as to provide other well paid services. Carillion, House of Fraser, BHS are the major failures hidden until too late by failures in accountant professionalism. PremierFX may be a smaller enterprise, but its failure further damages the reputation of an already tarnished profession.
Funnily enough I read the letter and was left with the impression it had been written by an office junior and sent out without so much as a proof reading. Very amateur-ish, both in content and grammar.
I would be even more worried now if I'd lost money.
Yes, this has been going on a while and the chances of depositors getting a refund is close to zero.
https://www.algarvedailynews.com/property-news/10977-bank-pulls-the-plug-on-the-keys-at-quinta-do-lago
http://www.dailymail.co.uk/news/article-6119129/Ant-Dec-face-losing-2-5m-Algarve-resort-bought-villas-goes-BUST.html
Strange that they prefer to be threatened with violence when there's nothing in it for them.
Smoke and fire!