Update: Worldspreads' Financial Irregularities Earn Police Attention


No comment from founder and erstwhile CEO Conor Foley

A new update arrived in the story of the failure of the financial spread betting firm Worldspreads this week, when the police was called in by the FSA to investigate the company's doings regarding the alleged financial irregularities.

So far, no comment or response on the events has arrived from the company founder and erstwhile chief exec Conor Foley, who departed after issuing a profit warning last month.

According to a number of sources, the police investigations will focus on whether the company accounts were falsified.

In related news, rumor has it that ETX Capital is negotiating with administrators at KPMG regarding the buy-out of some of the firm's 'residual assets'.

However, any bigger buy-out is less than logical, especially having in mind the company's statement made as a part of its announcement of the appointment of accountants KPMG as administrators: "The board of directors believe that as at close of business on Friday 16 March 2012, there was a shortfall of client money at WorldSpreads Limited of approximately GBP 13 million, and that gross amounts owed to clients are approximately GBP 29.7 million whereas the total cash balances available to the company are approximately GBP 16.6 million."

Despite the fact that KPMG will attempt to sell the company's technology, it's unlikely they'll be able to recoup any money for clients by selling WorldSpreads' customer database as the terms and conditions that punters signed up to do not permit such a move.

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