The German Federal Financial Supervisory Authority (BaFin) has made it clear that, in accordance with Article 37 (4) of the German Banking Act, Front Management LLC, based in New York, USA, is not authorized to conduct banking business or provide financial services. This entity is not supervised by BaFin.

The regulator found that clients of another firm it was already investigating, Barclay Private Equity, had been contacted and directed to Front Management LLC's website, front-management24.com. There is evidence that this was a case of identity theft against an American company.

The content provided on Front Management LLC's website provides reasonable evidence for the regulator to suspect that the entity is conducting banking business and/or providing financial services in Germany without obtaining the necessary authorisation.

According to the German Banking Act, an authorization is required to conduct banking business or provide financial services in Germany. However, some companies operate without authorization. Information on whether a company has been authorised by BaFin can be queried in the regulator's company database.

In view of this, BaFin, the German Federal Criminal Police and the German State Criminal Police recommend that anyone who wants to invest online should exercise a high degree of caution and do the necessary research beforehand to avoid falling victim to fraud.