The scheme began with a lavish event at a four-star hotel in central Sydney in 2023, where investors were plied with free food and cocktails and promised monthly dividends from algorithmic trading in futures and commodities like oil and gold. The company claimed users could start with as little as US$250 and withdraw at any time.
Jean Giles, a former public servant from Western Australia, invested $176,000 after attending the event. “The Sydney event was the clincher for me. I came away from there feeling quite euphoric. I’d found something that was going to give my husband and I enough money to enjoy our retirement,” she said.
Dean Butterworth, a Melbourne truck driver, invested $217,000 from a workers’ compensation payout after injuring his back. “Going to this event sort of made me feel comfortable knowing that we’re meeting real people,” he said. Both investors have since lost their money. Ms Giles sold her home; Mr Butterworth says bankruptcy is on the cards and he has returned to work despite his injury.
The event was also promoted with the involvement of former Australian cricketer Shane Watson, who was spruiked as Main Group’s “Australian ambassador”. Mr Watson told the ABC he cut ties with the group in November 2023, had no involvement in its management, and had tried to get promotional photos removed.
Company records show Main Group FX was initially registered at a luxury residential address in Sydney’s CBD and later switched to a serviced office in Chatswood. Staff at that location told the ABC they never saw anyone from Main Group. A deeper address in company documents points to Suite 5 at the Griffith Corporate Centre in Kingstown, St Vincent and the Grenadines – a Caribbean location previously flagged by Australian and UK regulators as a base for dubious online trading schemes.
The company’s directorship also raises concerns. ASIC records show a 21-year-old international student was registered as first director in February 2023; she told the ABC she had no idea her name had been used. The directorship then changed to Robin Mahfouz, an Australian-Lebanese citizen based in Cyprus. In an unsworn affidavit, Ms Mahfouz said she did not know the company might be a scam and alleged Mr Farag had offered her a higher salary if she allowed her name on registration documents. She declined to comment to the ABC.
Main Group FX never entered administration or bankruptcy and is now deregistered. There is no established mechanism for investors to recover their money. Some are pursuing action with police and regulators.
This is part one of a two-part investigation.