Eclipse Finance Limited, incorporated in 2015 traded as a Binary Options company. Binary options trading is a form of fixed-odds betting on movements in financial markets.
After the court received complaints about the company’s methods, the Insolvency Service investigated and petitioned for the company to be shut down, in the public interest.
The court proved these following complaints to be true:
- As Eclipse traded through a virtual office facility in London it was easy for them to make false and misleading claims. These claims persuaded people from all over the world to invest in a Binary Options scheme, which has now been proven to be false. This has now been wound up in the High Court on 26th June 2018.
- All known investors lost significant amounts of money, averaging over £50,000 each. Totalling over £500,000.
Irshad Mohammed, Investigation Supervisor, commented on the case:
‘Eclipse Finance Limited attracted investors with the promise of high returns but these to be unfounded and investors suffered heavy losses as a result. The Financial Conduct Authority have warned consumers of the high risks of Binary Options trading, but in this case no evidence has been found that the company engaged in such trading. Instead they used the false promise of high returns to attract investment and then disappeared. These winding-up proceedings show that the Insolvency Service will use the weight of its powers to take firm action against companies that operate in such an unscrupulous way’
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.