Customers of a British Columbia foreign currency exchange company have initiated legal actions and lodged complaints alleging that the business owes them significant amounts of money, specializing in transactions between Canada and Iran. Coquitlam RCMP has confirmed they are looking into the claims made by clients of VanEx Currency Exchange.
A number of individuals have taken legal action against the company in recent months, with eight people filing small claims lawsuits. Additionally, clients who assert they are owed substantial sums met with the company’s president last week to address their concerns.
VanEx president, Pouria Emadi, stated that the company is collaborating with the RCMP and is working on a plan to settle all outstanding debts by July. Emadi cited operational challenges stemming from internal disputes among the company’s founders and disruptions in Iran as factors contributing to the situation.
One affected customer, Sharereh Momeni, expressed feeling helpless after potentially losing $7,600 she earned working in British Columbia to repay a loan borrowed in Tehran for her move to Canada. Momeni, who has filed a lawsuit against VanEx, shared her disappointment in trusting a legally registered Canadian company that has not responded to her claim.
Following a legal battle between VanEx’s co-founders in the B.C. Supreme Court, discontented clients have also reached out to the province’s financial services watchdog. The regulatory framework for the money services industry in British Columbia is still in development despite legislation passed in 2023 for enhanced oversight.
VanEx, which grew from one employee to 14 within five years, faced internal conflicts leading to a stalemate and financial troubles. Despite these challenges, the company has continued to operate, drawing criticism from customers like Masoud Ghorbani, who is seeking repayment of funds transferred from Iran.
Various claimants have highlighted the company’s failure to fulfill promises, with Pouya Taatizadeh emphasizing that their primary concern is recouping owed funds. Recent legal actions have been taken against VanEx to recover outstanding debts, with the company asserting that claims should be pursued in Iran, not British Columbia.
VanEx has stated that due to financial constraints, it cannot immediately settle debts but has outlined a proposed repayment schedule. The company’s president acknowledged the ongoing repayment efforts to address customer concerns, with a commitment to complete repayments by July 2026.
The lack of regulatory action from the B.C. Financial Services Authority has drawn criticism, with stakeholders calling for swifter intervention to address grievances. While the regulatory landscape is evolving, affected individuals are urged to explore legal avenues for recourse while authorities continue to refine the regulatory framework.