The vanishing act

Main Group FX, a licensed Australian investment firm, disappeared three years ago leaving at least thirteen investors collectively two million dollars in the red.

The CEO's alleged links

Karim Farag, the thirty-two-year-old Egyptian former chief executive, has alleged connections to an organisation accused of funding terrorism, raising concerns about Australia's financial regulatory regime.

The Sydney event

In two thousand twenty-three, Main Group held a lavish event at Sydney Central hotel with free food and cocktails to convince investors the company was legitimate.

Jean Giles's story

Investor Jean Giles, a former public servant from Western Australia, invested one hundred seventy-six thousand dollars after the Sydney event left her feeling euphoric about her retirement.

“The Sydney event was the clincher for me. I came away from there feeling quite euphoric.”

Dean Butterworth's loss

Melbourne truck driver Dean Butterworth invested two hundred seventeen thousand dollars from a workers' compensation payout he received after injuring his back.

The business model

Main Group claimed to trade in futures and commodities including oil and gold, offering algorithmic trading software that allowed investors to set and forget their money.

Shane Watson's involvement

Cricket legend Shane Watson was spruiked as Main Group's Australian ambassador and posed for photos with branded clothing and a cricket bat, but was a no-show at the Sydney event.

Watson cuts ties

Shane Watson told the ABC he cut ties with Main Group in November two thousand twenty-three, had no involvement in its management, and tried to get the photos removed.

The collapse

A few months after the conference, investors said monthly dividends stopped, they could not withdraw money, and all trace of Main Group FX disappeared without entering administration or bankruptcy.

The aftermath for investors

Dean Butterworth was forced to return to work despite his back injury. Jean Giles sold her home. Both face financial ruin with no established way to recover their money.

“At the moment, financially, I'm barely holding it together. Bankruptcy is on the books.”

The fake addresses

Main Group listed a luxury residential address in Sydney's CBD, then an office space in Chatswood where staff never saw anyone from the company. Its real base was in the Caribbean.

The Caribbean connection

Main Group's actual address was Suite five at the Griffith Corporate Centre in Kingstown in Saint Vincent and the Grenadines, a location previously linked to dozens of dubious online trading schemes.

The director mystery

A twenty-one-year-old international student was registered as Main Group's first director in February two thousand twenty-three but told the ABC she had no idea her name had been used.

Mahfouz's claim

Robin Mahfouz, who became director in March two thousand twenty-three, said in an unsworn affidavit she had no idea the company was a scam and blamed CEO Karim Farag for using her name.

The terrorism connection

In March two thousand twenty-four, Karim Farag Mohamed Abdelhamid appeared on a list from Israel's defence minister of five hundred ninety-nine names accused of having cryptocurrency accounts funding Hamas.

The crypto seizure

Israel's National Bureau for Counter Terror Financing announced seizure of cryptocurrency wallets allegedly linked to Dubai Company for Exchange, which it said provided substantial assistance to Hamas.

US designation

In July, the US Treasury Department designated El-Kahira for General Trading, another name for Dubai Company for Exchange, as a terrorist group providing underground banking services to organised crime.

Investigator's concern

Ken Gamble, director of Australian intelligence firm IFW Global investigating Farag on behalf of investors, said he was pretty shocked to discover the possible terrorism links.

“It's not uncommon for terrorist groups to look at raising money through online investment fraud.”

Farag's response

Karim Farag declined an interview and did not respond to detailed questions but said he had nothing to hide and was willing to cooperate with appropriate authorities through proper legal channels.

“If there is a legitimate legal matter concerning me, I am more than willing to cooperate directly with the appropriate police authority, court, regulator or other competent government authority through proper legal channels.”