Phoenix Forex in liquidation

Mark Brewer, Phoenix Forex's self-proclaimed "sales legend", seen leaving court last week. Photo / Natalie Slade

Phoenix Forex, which the Financial Markets Authority issued a warning about in August, has been placed in liquidation.

Foreign exchange software company Phoenix Forex was the New Zealand distributor of the OakFX foreign exchange trading system, which customers paid up to $25,000 to access.

At the end of August, the FMA warned the public about doing business with the Auckland-based company or buying the OakFX system.

"The FMA believes that Phoenix Forex's claims about the level of returns made by its trading system are untrue, and that Phoenix Forex is misrepresenting the profitability of, and risks associated with, its trading system," the regulator said.

Phoenix Forex has now been placed in liquidation, according to the Companies Office.

Documents show Jared Booth and Tony Maginness from McDonald Vague, an insolvency and business recovery firm based in Auckland, have been appointed as liquidators for the company.

The pair will take control of the company's assets and sell them to repay creditors.

The first liquidators' report will be released this week, Booth told the Herald.

Last week, businessman Mark Raymond Brewer, who was associated with Phoenix Forex, avoided home detention for breaching the conditions of his second bankruptcy.

The OakFX system is no longer being sold in New Zealand.

- HERALD ONLINE