It is not unlikely to find financial institutions involved in some kinds of ponzi scheme and scandals . Equity First Holdings is also doing the same scandal with its customers. The company is making false promises to its customers and making them suffer because of their fraud.
As per the company’s claim, the company provides ‘stock loan’. However, it is similar to Derivium which is under many lawsuits for selling customer’s securities. Equity Holding is also under one similar lawsuit. I know about one and not sure if there are other as well.
The company sells a part or the entire securities of customer and once the customer pay back the entire loan, it purchases the securities from the market and give it back to the customer. It does this to fund its loan which is not legal way of operation.
It promises things that are not true and fools its customer for paying interest on their loan which they anyway make by keeping the difference of the securities that they sell and but back.
There are no financial statements and audited cash reserves of Equity First Holdings. I am not sure why SEC has not taken any action against them and have shut them out. This company is taking huge advantage of that leverage and have been scamming people since the day it came to operation.
There was a client of theirs, who could not get his securities back because the company could no but that back from the market. He tried a lot to fight with them and made complaints to their office as well. But, it was not sorted.
It is not the only case. There are hundreds of cases registered against them and they are not taking any action to correct their mistakes. Its sad that I could not find anything sort of negative information against them, otherwise I would not have dealt with them.
Whatever they promised to me, was nothing but lies. They can go any far in making profit. You cannot stay calm about your securities after handing over to them, because it will anyway be misused. If you are lucky, they will get it back from the market or it would be lost forever.
I would suggest asking for proof of financial health before you deal with any financial institution. Also, try to search for those institutions that are regulated and licensed. It will help you stay safe.
I was not aware of these things and was trapped into the fake promises of Equity First Holdings. That is the reason, I am posting this report here. I could not do much for the fraud that they did to me, but would like others to know beforehand about the mess they are.
It would be the worst decision to hand over your securities to them. They are not stock loan provider, but scammers and are making use of malpractices for serving its clients. They would soon meet their fate.