Euro Credit Holdings Rhys Aldous – Stock Loan Concerns Raised

 Euro Credit Holdings Ltd – Rhys Aldous – Stock Loan Concerns Raised

*Note -Our clients’ legal representatives have recommended sharing this review to encourage others to exercise caution and conduct thorough due diligence before engaging in transactions involving securities

**Update 29/03.24 –  We have received feedback from three reputable lenders noting an increase in inquiries from new brokers. It appears that efforts to promote awareness and encourage clients and brokers to work with reputable firms are having a positive impact

Our goal is to foster a more transparent and trustworthy stock loan industry by encouraging brokers and clients to work with reputable lenders.

We have also experienced a significant increase in inquiries from brokers and clients seeking genuine lending solutions

15th March 2024 – Important Advisory for Investors: Conduct Thorough Due Diligence

United Kingdom – Financial Conduct Authority – FCA – Euro Credit Holdings were previously Dreyfus Corporation

https://www.fca.org.uk/news/warnings/dreyfus-corp 

Monetary Authority Singapore: Investor Alert Issued: Euro Credit Holdings Limited

Link Here: https://t.ly/QrcIu

https://www.mas.gov.sg/investor-alert-list?rows=All&q=euro%20credit&sort=&page=1&date=2024-01-01T00%3A00%3A00.000Z%2C2024-12-31T00%3A00%3A00.000Z  

Money Smart – Australian Government Warning Website – Euro Credit Holdings Limited

https://moneysmart.gov.au/check-and-report-scams/investor-alert-list#!euro-credit-eurocreditcorp-com–2322

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We are preparing a detailed review of Euro Credit Holdings Ltd and their handling of stock loan agreements. According to our understanding, there were instances where less than 5% of the agreed stock loan was reportedly funded while the clients’ shares were retained. We encourage transparency and due diligence in such transactions

Our client has sought legal assistance in efforts to recover their shares. However, they have expressed concerns about the likelihood of a successful outcome. According to information provided by the stock exchange, a significant portion of the shares appears to have already been sold

The clients have engaged legal counsel to assist in recovering their shares. It has been reported that Euro Credit Holdings requested the client to transfer USD 80 million worth of stock to a designated stock custodian as part of the transaction

We are preparing an article aimed at informing individuals about the importance of conducting thorough due diligence when engaging with financial institutions, including Euro Credit Holdings Ltd. Our goal is to provide insights to help people make informed decisions about protecting their stocks and securities

Investors are strongly advised to exercise caution and conduct thorough due diligence before engaging with Rhys Aldous or Euro Credit Holdings for stock loans. It is important to ensure that all terms and agreements are clear and transparent to avoid potential issues with the handling of assets

There are concerns that some stock loan providers may lack sufficient funds to honor agreements, potentially leading to the sale of clients’ stocks to fund the loans. It is crucial for investors to carefully assess any stock loan arrangement and ensure that all terms are clearly understood

Euro Credit Holdings Ltd and Rhys Aldous have been mentioned on various platforms, and we will reference these discussions in our upcoming article. We encourage readers to conduct thorough research and consider all available information before making any financial decisions

This unlicensed UK based lender claims that its funds come from Ultra High Net Worth (UHNW) individuals and private investors. However, there are significant doubts about the accuracy of these claims, and investors should approach such statements with caution and conduct thorough due diligence before making any decisions

Here Are Some Facts For Consideration To Help Clarify Concerns Regarding The Claims Made By Rhys Aldous and Euro Credit Holdings

One important factor to consider is the use of multiple addresses by Euro Credit Holdings, which may give the impression of a staffed office. It appears that virtual office services are used, which can sometimes be a tactic employed to create a more professional appearance. We advise thorough research to ensure transparency and legitimacy in any financial dealings

We have chosen not to include direct links to the virtual office addresses, as readers can easily verify this information through a simple online search. We encourage everyone to conduct their own research to ensure they are fully informed

Consider why a company that claims to fund billions of dollars in stock loans might operate using a virtual office. Managing such large transactions typically requires a substantial staff, suggesting that further investigation and due diligence may be necessary to assess the legitimacy of the business operations

Concerns have been raised regarding the operational structure of the company, with some suggesting that it lacks a full team of staff. There are also reports of questionable practices, including claims of stock being transferred to individuals with connections to fraudulent activities. We encourage readers to conduct thorough due diligence and will provide further details and links to relevant information later in this article

While the company operates from the UK, it does not hold licensing from the UK Financial Conduct Authority (FCA), despite the fact that UK companies offering investment advice are required to be FCA regulated. The absence of FCA authorization means the company is not subject to the regulatory scrutiny and consumer protections that come with FCA oversight. This lack of official regulation raises significant concerns, and investors should exercise extreme caution and conduct thorough due diligence before engaging in any dealings.

Time Line Inconsistencies – Rhys Aldous and Euro Credit Holdings

One of the key characteristics of scams is the inconsistencies in timelines and the manipulation of information to create a false sense of credibility. Scammers often provide conflicting dates or deadlines, making it difficult for victims to verify the authenticity of the situation. These discrepancies can cause confusion, which in turn may lead victims to rely more on the scammer for clarification, further entrenching them in the fraudulent scheme

Timeline Inconsistencies – Rhys Aldous and Euro Credit Holdings:

There are notable inconsistencies in the timeline provided by Rhys Aldous and Euro Credit Holdings regarding key events and transactions. These discrepancies raise concerns, and we encourage further investigation and due diligence to verify the accuracy of the information provided

Dreyfus Corporation 10th June 2019

Euro Credit 18th March 2021

Kathryn Tyler – Worked At Euro Credit Holdings Since 2010

Explanation Inconsistencies – Rhys Aldous and Euro Credit Holdings

1. According to Rhys Aldous, Dreyfus Holdings Ltd was taken over by Euro Credit Holdings. Typically, such significant corporate takeovers are accompanied by a public announcement or news release to inform stakeholders. However, no such announcement was made, raising questions about the legitimacy of this claim. It appears that Dreyfus Holdings may have faced issues that led to the establishment of a new entity, Euro Credit Holdings, which some view as an attempt to distance itself from previous operations. Additionally, it is worth noting that there is no UK-registered company under the name Euro Credit Holdings Ltd, which further complicates the situation and raises concerns for potential clients and brokers
2. Any legitimate company that acquires another typically aims to retain its existing clients by using tools like a 301 redirect, which guides traffic from the old website to the new one. However, in this case, the old domain is no longer in use and has been closed down. This raises questions about the intent behind the transition, as it could suggest an effort to distance the new company from its previous operations and avoid continuity for existing clients and brokers. Such actions may give the appearance of attempting to reset their reputation and attract new business, while obscuring the company’s history
3. This is an ‘Employee of the Century’ award for Kathryn Tyler, who is reported to be the Executive Secretary to Rhys Aldous. It is noted that Kathryn was allegedly arriving at work incredibly early, with reports suggesting she had been arriving nine years before the incorporation date of Dreyfus Holdings in 2019. However, there are questions about the existence of Kathryn Tyler, as her role and details remain unclear, leading some to speculate that she may be a fictional creation.

The Case In Question – Stock Loan Scam

The typical structure of a stock loan scam involves the client transferring their shares into the custody of the lender, who then promises funding for the loan. However, after disbursing two small tranches, the lender will often find an excuse to declare the client in default, despite not funding the full loan amount.

It’s important to note that these initial tranches are not from the lender’s own funds. Instead, the company sells the client’s own stock to fund these payments, essentially using the client’s own money. Subsequently, the lender may demand a default fee, often around 10%, claiming it is necessary to retrieve the client’s shares, when in fact, this is a tactic to seize the client’s securities without fulfilling the loan agreement.

The complex contracts prepared by the lender are often structured in a way that favors the lender, placing the client at a disadvantage, even if the default is unintentional. These contracts are typically drafted by lawyers and tend to be biased, making it difficult for the client to defend their interests. To avoid such risks, it is always advisable to work with established, honest, and reputable lenders who prioritize fair terms and transparency

Note: Below is a condensed version of our client’s experience with the loss of shares, designed for readers to easily understand the process in a timely manner. Our goal is to educate stock loan clients about potential scams, helping them recognize fraudulent lenders and make informed decisions, ultimately ensuring that more clients choose legitimate lenders and avoid costly losses of their shares

The case in question, which we are unable to discuss in detail, involved two clients who owned USD 80 million worth of a Singapore stock. Both clients sought a stock loan to invest in and expand their business

Rhys Aldous assured us that Euro Credit Holdings could fund stock loans ranging from USD 1 billion to USD 2 billion, claiming that they had done so in the past. However, we have found no publicly available news or verifiable information indicating that Euro Credit has funded any deals of this size

1. In short, once all the necessary paperwork was completed by the clients, they were instructed by Euro Credit Holdings to send their stock to a company called Armira Securities for safekeeping. We were not involved in this process, as the clients completed the paperwork and transferred the shares directly to Armira as per the instructions from Euro Credit Holdings.
2. Once Euro Credit Holdings gained control of the shares, they claimed to have received a report from their so-called compliance team stating that the stock was not suitable for lending. The two clients were initially set to receive USD 20 million each, distributed over four tranches of USD 5 million per tranche. However, the lender then demanded that the clients re-sign new contracts or face the risk of defaulting on their existing agreements. Essentially, the clients were pressured into signing new contracts, which granted even more control to Euro Credit Holdings. All communications with the clients were handled by Rhys Aldous, with little to no involvement from any back-office personnel, who appear to be non-existent.
3. The clients received two tranches of just over USD 1 million each over a period of three weeks. The loan was non-recourse, meaning the shares were the sole guarantee for the loan. However, Euro Credit Holdings, through Rhys Aldous, then requested personal tax returns from each client covering the past three years. The clients declined to provide these, as the contracts clearly stated that the loan was non-recourse. Following this, the loan was declared in default, and the clients did not receive any further payments. The shares have still not been returned after more than two years
4. From the moment the shares were transferred to the custodian, there was significant selling activity, leading to a dramatic decline in the share price, which ultimately dropped by over 99% of its original value. The two shareholders who pledged their shares were major investors in the company, suggesting that Euro Credit Holdings may have sold the shares, resulting in the company becoming nearly worthless

The Stock Loan Issue with Euro Credit Holdings Ltd

Stock loan scams have become increasingly sophisticated, targeting uninformed businesses and individuals. These schemes often promise quick and easy stock loans to shareholders, but in reality, many so-called stock loan providers are unreliable and may fail to deliver the funds as promised. Clients who fall victim to these situations not only face financial losses from not receiving the expected loan, but may also struggle to get their stocks and securities returned due to unfavorable terms in the contract. They often incur high legal fees and spend years trying to recover their assets while the lender sells the shares into the market

How Do Stock Loan Scams Operate?

Clients and individuals often conduct online research and come across a variety of lenders and brokers advertising stock loan products. At this point, it’s important to note that many brokers may not fully understand or disclose how the stock loan industry operates. Scammers take advantage of this lack of transparency, often deceiving the introducing brokers with promises of large commissions, typically ranging from 3% to 5% of the loan amount. These commissions are usually outlined in the stock loan term sheet, which the client may be aware of, but they are part of the broader scheme that may not result in the client receiving the loan as expected. Additionally, the broker, despite their involvement in facilitating the deal, often doesn’t receive any payment for their work, leaving them with no compensation for their efforts

Proxies And Stock Loan Scams

In some stock loan arrangements, individuals may be asked to use proxies or third parties to facilitate the process. This is a common tactic used by less reputable lenders who may not have the client’s best interests at heart. The involvement of proxies can obscure the true nature of the deal, making it harder for clients to fully understand the risks and obligations involved. In these cases, clients may find that the terms of the loan are not as favorable as they were led to believe, potentially leading to financial losses. It’s essential to carefully review all terms and ensure that any intermediaries are legitimate before proceeding with a stock loan

Euro Credit Holdings and Rhys Aldous

From research conducted online, it appears that Euro Credit Holdings Ltd may have undergone several name changes in the past. The company is reportedly led by Rhys Aldous, who has been linked to various stock loan schemes. These schemes often involve the promise of stock-backed loans, which can be appealing to investors.

In the past, Rhys Aldous was associated with Dreyfus Corporation, a company whose website, dreyfuscorporation.com, is no longer operational. It’s not uncommon for companies in the stock loan industry to use names that appear legitimate, but it’s crucial for investors to be vigilant and conduct thorough research before engaging with any lender.

For those interested in the history of Dreyfus Corporation, a document titled “Dreyfus Stock Loan Provider Information” has been circulated online. It’s essential to review such documents critically and seek advice from reputable financial professionals before committing to any agreements.

It seems that Rhys Aldous transitioned to operating under the name Euro Credit Holdings Ltd, possibly due to ongoing legal challenges related to clients attempting to recover their stocks. Based on publicly available information, it appears that such situations have been a recurring issue within the stock loan industry, where clients have struggled to reclaim their assets after engaging with certain lenders.

It’s important for potential clients to exercise caution and thoroughly investigate any lender’s track record and business practices before entering into agreements. As with any financial arrangement, ensuring that the lender is reputable and transparent is essential to safeguarding one’s assets.