MOSCOW, July 30 - RAPSI. Investigators have opened a case against individuals who allegedly defrauded clients by simulating investment brokerage under the cover of Broco group, Moscow's Interior Ministry Department reports on Monday.

"Offenders used brocompany.com and brocompany.ru. websites for their unlawful operations," according to the report.

The probe has revealed that the entities comprising Broco group lacked licenses for investing, brokerage or trading.

"Clients were given the chance to monitor their "investment portfolios" on international financial markets, but it was nothing more than a simulation. Therefore clients believed that their funds were lost as a result of unsuccessful transactions," says the press release.

The police are trying to establish all the criminal group members and their victims. Broco offices are being searched while documents and equipment are seized.

Broco specialized in servicing retail clients on the Forex market. It wound up its operations on July 25. From that date, clients were given the option of closing their accounts themselves and on July 27 all accounts were closed on a compulsory basis.

According to earlier reports, U.S. authorities had accused Broco group in 2010 of unlawfully obtaining access to investors' brokerage accounts, which then were used for market rigging.

Broco was a Russian brokerage company dealing in Internet trading. It was established in 2008. Broco Investments Inc. is registered in the Republic of Mauritius.