WASHINGTON DC – The US futures regulator is continuing to battle FX fraud in the country, with charges hitting unregulated FX futures brokers and online retail trading platforms.
Forex fraud in the US has continued unabated, since regulations governing the management of retail FX funds were initially introduced six years ago (FX Week, April 16, 2001).
The Commodity Futures Trading Commission (CFTC) and the US District Court for the Southern District of New York is demanding more than $22 million from New York-based Century Maxim Fund, AJR Capital, and their principal Alexsander Efrosman.
The ruling ends a case initiated on September 30, 2005, when the CFTC filed charges claiming the companies had fraudulently raised more than $5 million from 110 clients between April 2004 and June 2005.
The companies claimed to be running managed FX futures accounts without registering as a regulated entity, as required under US law. The funds were instead used for personal expenses and to fund gambling activities.
The CFTC also filed a complaint against Texas-based Aden Rusfeldt and Rusfeldt Investments. The regulator said that from at least October 2005, Rusfeldt and Rusfeldt Investments had run a fake online FX trading site targeting retail investors, called www.easytrading.biz.
Specifically, according to the complaint, Rusfeldt's sales pitches included false representations such as profit guarantees and no commission.
Rusfeldt's customers made more than $1.5 million in losses.
Litigation is ongoing.
The week on Risk.net, July 7-13, 2018Receive this by email