Punters with accounts in credit at a major financial spread-betting firm look set to lose their money after administrators discovered a £13million black hole in its accounts.Customers of WorldSpreads will be left seeking compensation after it was placed into administration over the weekend.
'Accounting irregularities' were found at the firm, which runs online and telephone trading services.
Administrators at KPMG said the group's 15,000 customers were owed £29.7m, but the group has only £16.6m of cash, leaving a substantial shortfall.
However, customers may be reimbursed up to £50,000 by the industry's Financial Services Compensation Scheme, depending on their circumstances.
On Wednesday, chief executive and co-founder Conor Foley resigned, two weeks after chief financial officer Niall O'Kelly stepped down following a profits warning.
Its shares were suspended from trading on the Alternative Investment Market (AIM) on Friday. Read More
