After Indian authorities seized $15.3 million in
assets tied to Pavel Prozorov, including a luxury yacht, the OctaFX majority
shareholder has lost his voting rights in the firm.
The Cyprus Securities and Exchange Commission (CySEC) issued a notice today (Wednesday) seeking to reduce Prozorov’s management
influence over Octa Markets Cyprus Ltd.
Regulator Cuts Influence
CySEC said Prozorov’s role as ultimate beneficial
owner was “prejudicial to the sound and prudent management” of the firm. At
its August 25 meeting, the regulator voted to suspend the exercise of his
voting rights, which cover 95% of the company’s share capital.
Prozorov is also barred from serving on the board or
exercising any management duties. The regulator explained in a statement that the
measures were designed to end Prozorov’s influence over the Cyprus Investment
Firm (CIF).
Indian Investigation Looms Large
The Cyprus move follows enforcement actions in India,
where authorities seized Prozorov’s assets, including a luxury yacht. India’s
Directorate of Enforcement (ED) accused him and OctaFX of defrauding investors
with false promises of high returns and laundering funds through mule accounts
linked to shell e-commerce companies.
Indian regulators have previously fined OctaFX for
operating without authorization, while Singapore also blocked access to its
website earlier this year.
Related: India “Cherry” Picks a Luxury Yacht in Probe Against Octa
In July, India’s Enforcement Directorate (ED) attached
assets worth about $15.3 million linked to Prozorov as part of its ongoing
investigation. The seized assets also included two houses in Spain, a
minijet boat, and a high-end car.
The yacht, named Cherry, is reportedly an
Italian-built commercial vessel operating in the Western Mediterranean. The ED
said the attachment order bars the sale, transfer, or mortgage of the assets,
although the owner may continue to use them while the probe continues.
A few weeks later, India’s securities regulator reached a settlement with Tauga Private Limited (formerly OctaFX India Private Limited)
over its alleged links to OctaFX,
which is now not authorized to operate in the country. The company reportedly agreed
to pay INR 3.2 million (around $37,000) but did not admit or deny the
regulator’s findings.
This article was written by Jared Kirui at www.financemagnates.com.
