WorldSpreads, an AIM-listed operator of online and phone betting services based in Dublin, was placed in administration late on Sunday after the Financial Services Authority (FSA) uncovered “accounting irregularities”.
Possible translation: They stole customer money?
It is believed that the company broke the golden rule that client money should not be “co-mingled” with company money.
Administrators KPMG said the clients were owed £29.7m, which should have been held in a segregated customer account, but that the group’s total cash balance – including “segregated money” – was just £16.6m. The police have been alerted over suspected criminal action.
Of course we'll probably get treated to yet another dog and pony show about how this sort of thing isn't criminal, and it's just a civil matter (oh, and we have corporate liability shields too since this was an "accident" or "unforeseen circumstances" and not deliberate activity.)
The FSA said: “Clients should be aware that any shortfall in the client money accounts will impact the amount of money that can be returned.”
In other words your money was stolen -- again.
Why is it exactly that the executives of these firms are not held personally responsible for this sort of crap?
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.
The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
Looking for "The Best of Market Ticker"? Check out Ticker Classics.
Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.
The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.
Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.