ASIC probes Sydney firm after investors allegedly lose up to $138 million
Australian investors may have lost as much as $138 million through Main Group FX, a scheme that operated under a licence granted by Sydney-based MGF Capital, now under ASIC investigation.
Investors allege that Main Group FX, promoted as a regulated commodity-trading platform, was in fact a fraud that operated under the Australian Financial Services Licence of MGF Capital, a Sydney firm directed by former Goldman Sachs trader Matthew Starkey. The alleged scam may have siphoned up to $138 million from Australian savers, with at least $2 million linked to Main Group FX alone. ASIC has opened an inquiry into possible oversight, due-diligence and compliance failures by MGF Capital in authorising the scheme.
Victims such as Candice Driver, Lewis Murray and Jean Giles report lost funds and difficulty withdrawing money, while MGF Capital’s exit from AFCA membership in January 2024 has left many without an ombudsman avenue. Experts warn the case highlights weaknesses in the licence-holder model, where firms can grant sub-licences to multiple representatives without ongoing supervision. The investigation continues as authorities assess whether the licence provider bears responsibility for the alleged fraud.
Why it matters
It reveals potential gaps in Australia's financial licensing system that could expose retail investors to large scams.
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