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Foreign Exchange

This archive displays posts tagged as relevant to foreign exchange or ForEx fraud. You may also be interested in the following pages:

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September 26, 2018

Two brokerage firms, UK-based TFS-ICAP LIMITED and New York-based TFS-ICAP LLC, pled guilty to securities fraud under New York's Martin Act for their roles in posting fake trades, bids, and offers by inter-dealer brokers for emerging market foreign exchange currency options.  The fake trades were intended to create a false appearance of liquidity in the emerging markets FX options market and encourage traders to buy and sell FX options via TFS-ICAP rather than other brokers.  In addition to the criminal pleas by the companies, a civil settlement requires them to implement remedial procedures, retain an independent monitor, pay $1.5 million, and cooperate in ongoing investigations.  NY AG.

July 19, 2018

A federal court in Utah has ordered an Estonian currency dealing company, Tallinex, to pay $10.2M in restitution and an additional $681K in fines for operating as an unregistered foreign exchange dealer and soliciting US customers. The CFTC also alleged that Tallinex defrauded its customers by making false or misleading representations about customer funds being protected in case of the company’s collapse. A Nevada-based broker, General Trader Fulfillment, that introduced American customers to Tallinex was also ordered to pay an $85k civil penalty. CFTC

June 4, 2018

The CFTC issued an order against Société Générale S.A. settling charges of manipulation of Yen LIBOR, attempted manipulation and false reporting of Euribor and U.S. Dollar, Yen and Euro LIBORs, and aiding and abetting traders at another bank in their attempts to manipulate Euribor. The bank engaged in this misconduct to make money on its trading positions and to protect its reputation from speculation that it was having more difficulty borrowing unsecured funds than other banks. Société Générale will pay a civil monetary penalty of $475 million, cease and desist from further violations, and adhere to specific undertakings to ensure the integrity of its LIBOR, Euribor, and other benchmark interest rate submissions in the future. CFTC

June 15, 2018

New York and over forty other states announced a $100 million dollar settlement with Citibank to resolve allegations that the bank fraudulently manipulated U.S. Dollar LIBOR, a critical interest-rate benchmark that impacts global financial instruments worth trillions of dollars. The New York Attorney General’s Office led the investigation, which found evidence that Citibank made material misrepresentations and omissions regarding the LIBOR benchmark to state and local governments, as well as non-profit, private, and institutional counterparties. The states alleged that Citibank entered numerous LIBOR-referenced transactions without disclosing that it had reason to believe that its own LIBOR submissions did not accurately represent its borrowing rates. NY

New York Hits Credit Suisse with $135M Fine for Forex Violations

Posted  11/14/17
By the C|C Whistleblower Lawyer Team Credit Suisse AG agreed to pay a $135 million fine to settle charges by the New York State Department of Financial Services (DFS) that the bank violated New York banking law through a variety of illegal activities that disadvantaged customers. Specifically, the government found that from at least 2008 to 2015, Credit Suisse "consistently engaged in unlawful, unsafe and unsound...

July 11, 2017

The U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the U.S. District Court for the Eastern District of New York against Defendants Daniel Winston LaMarco and his company, GDLogix Inc., charging them with off-exchange foreign currency derivatives (forex) fraud, commodity pool fraud, and failure to register with the CFTC, as required. LaMarco previously resided in Huntington, New York, and GDLogix’s last known principal place of business was in Huntington, New York. Neither Defendant has ever been registered with the CFTC. CFTC

June 22, 2017

The U.S. Commodity Futures Trading Commission (CFTC) today filed a civil enforcement action in the U.S. District Court for the Southern District of New York against Defendants Michael S. Wright, of Jersey City, New Jersey, and his firm Wright Time Capital Group LLC, d/b/a Global FX Club(WTCG), a New York limited liability company, charging them with fraud, misappropriation, and issuing false account statements in connection with a pooled investment in foreign currency derivatives (forex) trading. The CFTC Complaint also charges WTCG with failing to register with the CFTC as a commodity pool operator (CPO), as required, and engaging in activities prohibited for a CPO, including commingling pool funds with Defendants’ funds. Specifically, the CFTC Complaint alleges that from approximately August 2010 through the present, Defendants engaged in a fraudulent scheme to solicit more than $400,000 from at least 10 members of the public, promising to use pool participant funds for forex trading. Defendants allegedly traded only a portion of pool participants’ funds and misappropriated the majority of those funds for unauthorized personal or business expenses such as food, clothing, jewelry, and entertainment. CFTC

June 5, 2017

The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a civil enforcement action in the U.S. District Court for the District of Utah against Tallinex a/k/a Tallinex Limited (Tallinex), of Tallinn, Estonia, and General Trader Fulfillment (GTF), a Nevada company doing business in Pleasant Grove, Utah. The CFTC’s Complaint charges Tallinex with operating as a Retail Foreign Exchange Dealer (RFED), without being registered as such with the CFTC, and with fraudulently soliciting U.S. resident customers to trade leveraged foreign currencies (forex). The Complaint charges GTF with acting as an unregistered Introducing Broker (IB) by soliciting U.S. customers to open forex trading accounts with Tallinex. Specifically, from at least September 2012 and continuing to at least September 2016, Tallinex fraudulently solicited and accepted at least $1.5 million from U.S. customers in connection with leveraged or margined forex transactions, to which it was or offered to be the counterparty. Moreover, according to the Complaint, in the course of soliciting retail forex customers, Tallinex made fraudulent misrepresentations and omissions of material fact and engaged in fraudulent and deceptive business practices. CFTC

April 20, 2017

The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a civil enforcement action in the U.S. District Court for the Central District of California, Eastern Division, against Capitol Equity FX LLC (Capitol Equity), a purported hedge fund operating in California, and its principals and agents, Robert Leland Johnson IV and Marisa Elena Johnson, both of Chino, California (collectively, Defendants). The CFTC Complaint, filed on April 19, 2017, charges Defendants with commodity futures fraud; off-exchange, leveraged or margined retail foreign currency (forex) fraud; commodity pool fraud; and failure to register with the CFTC, as required. The Complaint also charges Capitol Equity with engaging in activities prohibited for a commodity pool operator, including commingling customer funds with Defendants’ personal funds. CFTC
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