Police raided the offices of the Capital Partners brokerage yesterday morning and detained a Czech citizen suspected of masterminding a Ft 3 billion fraud scam.
The financial supervisory Pszáf revoked the licences of all Capital Partners brokers, some 70 other companies and individuals, after finding that the Czech company may have been engaged in fraud, and seriously violated legal requirements on providing information to retail investors.
Police searched the Capital Partners office in Debrecen as well as the Budapest office on Bajcsy-Zsilinszky út. Two Slovak and two Hungarian managers were detained, as well as the Czech CEO.
Budapest police started an investigation based on a Pszáf report submitted last year. Capital Partners agents promised clients that they could earn extra profit by investing $150,000.
The company’s main activity reportedly was charging high fees to clients. The company charged commissions of 1.5-1.9% on all transactions, and police sources said the money was pumped out from clients to offshore accounts.
Capital Partners can be sued for damages only in the Czech Republic in the Czech language, said Pszáf spokesman István Binder, adding that the Pszáf has informed the Czech central bank of its action.