IG Index allows people to hedge their money on the price of stocks and other financial vehicles through spread betting. Tchenguiz connected with the company in 2019, ready to further his billionaire lifestyle.<\/p>\n
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In order to do so, he bet big on the price of Scotland-based FirstGroup, which owns several transportation companies and trades on the London Stock Exchange. At the time, FirstGroup was trading at \u00a31.30 (US$1.53). But with the onset of COVID-19, it dropped to \u00a30.32 (US$0.38). Currently, the stock sits at \u00a31.125 (US$1.32).<\/p>\n<\/div>\n
With some firms, clients receive special authorization to extend their account status to a deficit when prices drop. This is with the understanding that they are professional investors who can cover the losses in the event things don\u2019t turn around.<\/p>\n
When the price hit its low point, IG Index closed Tchenguiz\u2019s account, leaving him with a negative balance. As a result, the company is now suing him for the losses, plus \u00a3592,000 (US$696,132) in interest.<\/p>\n
Tchenguiz has no intention of paying the debt. Instead, he asserts that, in accordance with Financial Conduct Authority (FCA) rules, he was a \u201cretail client\u201d and therefore, not responsible for the money. A request for input from the FCA didn’t receive a response before press time.<\/strong><\/p>\nOther spread betting firms may go after Tchenguiz as well. The Daily Mail<\/em> indicated that he may have opened accounts with a number of different companies, and at least one more has already surfaced.<\/p>\nIf there are others, and if they all performed as poorly as the IG Index account, then there is possibly a list of firms looking for compensation.<\/p>\n
Writing On the Wall<\/h2>\n IG Index\u2019s lawsuit follows a similar suit Tchenguiz recently wrapped up and which didn\u2019t go well for him. That case may have helped give IG Index more confidence to move forward with its own lawsuit.<\/p>\n
CMC, another spread betting firm, sued Tchenguiz for failing to pay an outstanding debt on accounts he had with the company. In that case, the investments also targeted FirstGroup.<\/strong><\/p>\nThe loss was significantly less compared to what IG Index has requested. When the case went to court, Tchenguiz argued that CMC had miscategorized his client status, which caused the deficit, and that it didn\u2019t warn him of the risks.<\/p>\n
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Tchenguiz, who contemplated buying London\u2019s Trocadero in 2005 and turning it into a resort and casino, didn\u2019t find any sympathy in the legal system. At the end of June, a judge ordered him to pay \u00a31.31 million (US$1.53 million) to CMC. If that outcome is any indication, IG Index may have a case.<\/p>\n<\/div>\n
Tchenguiz is already appealing the CMC court loss.<\/p>\n","protected":false},"excerpt":{"rendered":"
Robert Tchenguiz reportedly had everything going for him, including a lifestyle that allowed him to purchase a Ferrari F40 and a \u00a320-million (US$23.55 million) townhouse in London. A new battle with a spread-betting firm may, to a certain degree, explain how he accumulated his wealth. The flamboyant 61-year-old entrepreneur and securities dealer had a lifestyle […]<\/p>\n","protected":false},"author":64,"featured_media":228712,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,19853],"tags":[81919,82103,82142],"acf":[],"yoast_head":"\n
Spread-Betting Firm Accuses British Tycoon Robert Tchenguiz of Skipping Out on \u00a36.5M Debt - Casino.org<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n