Foreign Exchange
This archive displays posts tagged as relevant to foreign exchange or ForEx fraud. You may also be interested in the following pages:
Top Ten Federal Financial Fraud Recoveries of 2021
Posted 01/21/22
November 29, 2021
Denari Capital LLC and its principals Travis Capson and Arnab Sarkar have been ordered to pay a total of $4 million in penalties and restitution based on findings that they engaged in foreign exchange (forex) pool fraud and failed to register with the CFTC as a commodity pool operator and associated persons. Defendants misrepresented Denari’s trading and performance in fraudulent solicitations, issued false account statements, and improperly commingled pool funds. CFTCSeptember 27, 2021
Wells Fargo Bank, N.A. will pay $72.6 million to resolve claims that it violated the Financial Institutions Reform Recovery and Enforcement Act (“FIRREA”) by overcharging commercial customers from 2010 to 2017 for foreign exchange (“FX”) service. The government alleged that the bank fraudulently marked up the prices on currency it was selling and marked down the prices on currency it was buying, and concealed those markups from customers through various misrepresentations and deceptive practices. The total settlement includes a $37.3 million civil penalty and forfeiture, as well as $35.3 million in restitution to customers. USAO SDNYAugust 25, 2021
Default judgment was entered against Silver Star FX, LLC d/b/a Silver Star Live, Silver Star Live Software LLC, and David Wayne Mayer based on findings that, acting as unregistered commodity trading advisors, they fraudulently solicited customers to open discretionary foreign exchange trading accounts that would purportedly use an automated trading software developed by Mayer. Defendants misrepresented Mayer's qualifications and trading experience, as well as the trading system's performance history and expected profits. Defendants were ordered to pay $3.9 million in restitution and $11.7 million in civil monetary penalties. CFTCJune 3, 2021
The CFTC obtained a default judgment against Florida resident James Frederick Walsh, who was ordered to pay a penalty of more than $500,000. Walsh, who was not registered with the CFTC, marketed himself through social media as an experienced foreign exchange trader who could conduct retail forex trades for customers. Walsh advertised that the COVID-19 pandemic created an opportunity for increased forex trading profits, guaranteed returns, and claimed to have inside information about forex markets. CFTCDecember 14, 2020
Interdealer brokers TFS-ICAP LLC and TFS-ICAP Ltd. will pay $7 million and admit that between 2014 and 2015 its employees engaged in “flying” prices and “printing” trades on FX options by representing to clients bids and offers that had not been made, and communicating to clients trades that had not occurred. CFTCCatch of the Week: Goldman Sachs Agrees to Pay Over $2.9 Billion in Foreign Bribery Case
Posted 10/23/20
Catch of the Week: DOJ Charges North Korean and Malaysian Nationals for Bank Fraud, Money Laundering and Sanctions Violations
Posted 09/11/20
