Customers of a British Columbia-based foreign currency exchange company have initiated legal actions and grievances asserting that they are owed substantial sums by the company specializing in transactions between Canada and Iran. The Coquitlam RCMP has confirmed that they are looking into the complaints lodged by patrons of VanEx Currency Exchange.
Several individuals have filed small claims lawsuits against the company recently, with other clients claiming larger outstanding amounts. During a recent meeting with the company’s president, Pouria Emadi, plans were disclosed to settle all pending dues by July. Emadi cited internal disputes among the company’s founders and unrest in Iran as contributing factors to the operational challenges faced by VanEx.
One affected customer, Sharereh Momeni, expressed her distress over the situation, fearing the loss of $7,600 she had earned while working in Clearwater, British Columbia, to repay a loan acquired in Tehran for her relocation to Canada. Despite her legal action against VanEx, the company has not responded to Momeni’s claim.
The ongoing dispute stems from a legal battle between the co-founders of VanEx, initiated in 2019 to facilitate money transfers between Iran and Canada. Dissatisfied customers have also raised concerns with the province’s financial services regulatory body, awaiting the implementation of a law designed to oversee British Columbia’s money services sector.
VanEx experienced significant growth over the years, with revenues exceeding $1.7 million in 2023. However, internal conflicts led to a deadlock within the company, prompting Emadi to seek court intervention for a forced sale process between the partners. Amidst these internal struggles, customer debts reportedly accumulated.
One claimant, Masoud Ghorbani, alleged an unpaid debt of $15,000 after transferring $21,009 from Iran to Canada. Despite repeated visits to the Coquitlam branch seeking clarification, Ghorbani stated that VanEx claimed financial losses of approximately $700,000 CAD. The company continued its operations while failing to pay multiple customers, according to Ghorbani’s court documents.
Another customer, Pouya Taatizadeh, shared his disappointment over VanEx owing him over $67,000 US from a transaction involving the transfer of funds to his father’s Canadian bank account from Tehran. Taatizadeh provided email correspondence indicating unfulfilled promises from the company, emphasizing their right to pursue compensation.
Recent legal actions against VanEx, including a $35,000 loan repayment demand, have highlighted the company’s financial challenges. VanEx’s responses to lawsuits have contested the jurisdiction of British Columbia and proposed repayment schedules due to their financial constraints. Emadi assured customers of the company’s efforts to stabilize operations and gradually repay outstanding amounts, with a completion target set for July 2026.
Criticism has arisen regarding the delayed response from the B.C. Financial Services Authority (BCFSA) in addressing the complaints against VanEx. While the regulatory framework is still under development, affected individuals have been advised to explore legal avenues or report incidents to relevant authorities for redress.
In conclusion, the unresolved financial discrepancies at VanEx have raised concerns among customers, highlighting the need for effective regulatory oversight within the money services industry to safeguard consumer interests.