AFX Capital Ltd. declined to pay its outstanding invoices for the legal services it received. Consequently, White and Williams LLP filed a motion to withdraw from the broker and its defendant as its legal representative.
WW claims they repeatedly attempted to communicate with the broker for this matter, but the broker refused to respond. The firm filed the motion with the New York Court, claiming that “irreconcilable differences have arisen.”
Previous legal representatives Foley & Lardner LLP also withdrew as counsel in 2018. F&L said this was because the broker didn’t pay “significant legal services” without communicating.
Two more legal counsels are currently requesting to withdraw as the financial service provider’s representatives.
Chapter 11 Trustee of Avenica, Inc. and Gallant Capital Markets, Ltd. Esther DuVal is in a legal battle against AFX. DuVal is seeking Sanctions and Feed for Engaging in Bad Faith and Injunction Relief.
The broker failed to pay a settlement amount of $830,000, which both parties agreed on. The broker had to deposit $230,000 by May, but the company has not paid yet.
DuVal’s accusation claims that the broker used manipulative strategies of delay, obfuscation, and fabrication. White and Williams LLP, at the time, said the Sanctions were entirely “without merit.”
CySEC and the UK Financial Conduct Authority suspended the financial service licenses earlier this year.
FCA closed all open positions on its clients on August 7th and liquidated all positions to cash balances. By the same date, the company’s representatives cannot conduct regulated activities except with written consent from the FCA.
The firm was mandated to hold all client money for clients by the UK regulator’s rules.
CySec previously suspended the broker’s license in July for ten days. However, the Commission has not said AFX can continue its operations yet.
The Commission asked Chapter 11 Trustee Joseph Maniscalco, Esq, to wait for the broker’s status reports regarding the settlement.
Maniscalco filed the sanctions anyway. WW requested for the motion’s withdrawal so both parties can address it in court, but Maniscalco refused.