We hereby introduce to you today Konstantin Mikov, the founder of Mikov & Attorneys law firm and the Financial Litigation Lawyers network. We will provide more details on the ways the IronFX broker attacked our lawyer Konstantin Mikov on several occasions.
Who is Konstantin Mikov?
Konstantin Mikov graduated with a master’s degree in European law from the Montesquieu University in Bordeaux. After working for a copule of large legal firms, he decided to establish his own law firm, Mikov & Attorneys. Then he specialized in the protection of traders on Forex trading platforms. Now, resolving disputes between brokers and international traders is an integral part of his job. Thanks to his experience in European law, he has resolved numerous disputes for clients from France, Belgium, Great Britain, Germany, Spain, and Luxembourg.
In general, the brokers practically apply one and the same models for manipulation of traders when using the trading platforms:
- Promises for exceptional profit
- Poor investment management
- Commercial pressure
- Impossibility to withdraw invested funds
You would definitely tell yourself that traders knew about the risks associated with Forex investing. However, bad practices, as those mentioned above, should not be the cause of traders’ losses. In case of significant financial loss Konstantin Mikov’s law firm and he personally will help you deal with the breached obligations of the brokers, as well as recover your losses.
For this purpose, Mikov & Attorneys collects and drafts documentation necessary in potential court proceedings, keeps tracks on deadlines for processing and protects clients until the dispute is resolved by providing:
- Legal analysis of the elements of the dispute
- Defence strategy against the broker
- Advice on legal alternatives available to the client
- Support until the pre-trial settlement of the dispute
II / Tangible tension between IronFX and Konstantin Mikov
There has been a case for some time between the IronFX platform, licensed in Cyprus, and Konstantin Mikov. In fact, this case involves 50 clients who have lost about 2 million euros. This amount is significant even for a trading platform with offices in London, Johannesburg, and Sydney. Such case may explain the aggressive reaction of the broker as there is a risk of imposing administrative sanctions for systemic violations.
1. What kind of scheme is used by IronFX?
The unauthorized trading platform La Maison Du Placement in France has made many people to invest outside the European regulatory framework. Such operation was made possible through the involvement of IronFX, a brokerage company regulated by the Cypriot Financial Markets Authority (CySEC).
La Maison Du Placement has used a false declaration for a registration with the Banque de France to gain the trust of its customers. In our opinion, when investing through La Maison Du Placement, French clients such as Jean P. were redirected to the website of the IronFX broker, authorized in Australia. However, Jean P.’s investment was received by the IronFX broker, authorized by CySEC.
IronFX is a well-known brand in the field of online platform trading. The broker has offices in Cyprus, London, Johannesburg, and Sydney and is authorized by CySEC in France with its European passport. It has committed violations of the regulations in the past and has been investigated by the competent authorities. In December 2017 and November 2015, after investigations CySEC issued decisions on the alleged violations of IronFX and IronFX paid to CySEC 335,000 euros.
We suspect that IronFX uses a classic model in which the loss of the client creates profits for the broker itself. As we said earlier in this article, this could not have happened without the participation of La Maison du Placement. We suspect that La Maison du Placement (LMDP) acted as an intermediary, i.e. Introducing Broker for IronFX, to target its clients and make them investing outside the European regulatory framework.
2. What is the strategy of Konstantin Mikov?
Mikov’s legal strategy is to seek reimbursement for his clients in Australia, rather than in France or Cyprus, by filing complaints to the local financial ombudsman, AFCA. He already obtained decisions in favour of his customers. One of the decisions has been finalized, the others are being appealed, but if confirmed, they will become irrevocable. In one of the cases that was closed so far, AFCA ruled on the reimbursement of the invested amount by IronFX because it had not been appropriate for the client to trade in complex and risky financial instruments. Such decision opens the door to many other similar cases. Indeed, Attorney-at-law Mikov managed to find sufficient evidence, therefore the IronFX broker should bear respective civil responsibility before the client.
III / IronFX is trying to intimidate attorney-at-law Konstantin Mikov
Directly related to this case, a lawyer representing IronFX Cyprus demanded from Konstantin Mikov to remove the articles regarding the IronFX broker from the Financial Litigation Lawyers website. In addition, in his letter, the lawyer pointed out four legal threats. Here are the four legal threats that Konstantin Mikov received:
- The first is for defamatory denunciation
- The second is civil for civil defamation
- The third is for the banned advertising
- The fourth is criminal for defamation
That is why the Sofia District Prosecutor’s Office started investigating Konstantin Mikov. However, he is used to being questioned by the police when explaining why he reported alleged violations of the law on behalf of his clients.
The sole purpose of these various legal threats is to reject criticism and waste the opposing party’s time. In fact, this strategy is not about winning, but simply about occupying the enemy’s side for months or years, wasting time and money. This is just the SLAPP phenomenon.
SLAPP (strategic lawsuits against public participation) “refers to a lawsuit filed by an organizer, company or public intervener against citizens in order to limit, hold, prevent or sanction their participation in the public debate.”
To date, all legal threats have been neutralized as the respective claims were rejected except for the civil legal threat for civil defamation. Indeed, it is outstanding in court. We will give you more information when available.
For a link to our article in the local newspaper Capital.bg “Condemn me if you can”, that you can also read.
In addition, attorney-at-law Konstantin Mikov was recently interviewed by Le Parisien French newspaper to condemn the current model of some influential people with the IronFX broker. We invite you to read this article to learn more about this growing phenomenon.