THE LEADERGUARD SCAM

Thursday the 28th of February is a big day in Mauritius for 1,700 honest folk who invested their hard earned savings in a currency trading company called Leaderguard Spot Forex.

These mostly poor people lost some 300 - 350 Million Rand because the organisations that should have protected them from fraud on the part of company Directors failed to do so.

On Thursday the 28th of February the investors in Leaderguard Spot Forex (the currency trading half of Leaderguard) are taking to court in Mauritius one of their most important protectors: the firm that audited Leaderguard accounts and made sure that a bank in Denmark confirmed individual accounts.

This protector is KPMG Mauritius (one of the international auditing big four).

Why is KPMG in court?

In simple terms – some yes and no questions:- (answers highlighted in red)

When auditing did KPMG find out that two of the Directors of Leaderguard Spot Forex (LSF) had been involved in other schemes (Prozet/Chinza) to defraud other people?Yes/No

Did KPMG make sure that (LSF) had enough funds that would allow it continue in business? Yes/No

Did KPMG make sure that LSF had put together half yearly financial statements for the Mauritius Financial Services Commission? Yes/No

Did KPMG discover that LSF had failed to process all its banking through an account in Mauritius? Yes/No

Did KPMG find out that LSF had not kept books and records that truthfully set out its business affairs? Yes/No

Did KPMG learn that LSF had failed to keep its own funds separate from money obtained from investors? Yes/No

Did KPMG discover that LSF had failed to keep its promise to investors that only 20% of their money would be traded (or lost)? Yes/No

There are another dozen or more failings in the investor summons against KPMG.

Keep reading our postings and look out for the KPMG’s audit report.