Category: 2014 CFTC Regulation Actions taken against brokers and firms.

Jan-Sept 2014 CFTC law suits (enforcement actions)

the following information was copied off the official CFTC website.



U.S. Commodity Futures Trading Commission

Enforcement Press Releases

See Also:

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CFTC’s Commitment to Open Government

Media Contacts in Office of Public Affairs

  • Steven Adamske
  • 202-418-5080
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Press Room Email Subscriptions


Merrill Lynch, MERRIL EDGE Investing, MarketPro™ = They are counter party on: BATS |BIDS ATS |NYSE Amex, Arca|Chicago, EDGA, EDGX, ISE Stock Exchange|eBX/LeveL ATS|CBOE C21|Nasdaq Options Market |OMX Phlx.

Pertains to ALL accounts up to and including NASDAQ Level II accounts


The Merril Lynch website is designed to look different than typical trading sites. There’s no Risk Statement link. It actually took over an hour of searching to find what I was looking for- the info that’s normally under “risk statement” or “customer account agreement” – The statement where they inform you about whats really going on.  
They are required to tell you the truth -and they do. It says you cant trust their advice because they are paid to tell you where to invest by the various exchanges and or by the fund/securities provider. They state that they:  Act as the counter party, Purchase holdings against you, act as market makers, profit 100% from acting as the Principle. They advise you to do what will make them the most money- regardless of if its thru your gain or your loss of funds. There’s more-  read below….

Please read the statement below. Warn anyone you know who invests thru Merril Lynch in ANY form at all (mutual funds, securities, stock, all forms of investing)

To follow my path to the information- start here: scroll to bottom of short page and click  Legal Information.  On that page – scroll down to Routing and Execution Disclosures Made Pursuant to Rules 605 and 606 of SEC Regulation NMS. At the end of the second paragraph of Rule 606 select: “click here” which takes you to this page: Material Aspects of Relationship with Route Venues which I copied to below.

Resource links:

Merrill Edge MarketPro

SEC Rule 606 Reports – Merrill Lynch, Pierce, Fenner & Smith Incorporated

Disclosure Information:

Disclosure Information: Material Aspects of Relationships with Venues to Which Customer Orders are Routed Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) is a broker-dealer that executes customer orders as agent and/or principal and receives remuneration for performing these execution services. MLPF&S acts as a registered market maker in numerous Nasdaq securities and may execute customer orders in such securities on a principal basis. MLPF&S also may principally commit capital to facilitate customer transactions or serve as the contra-side to customer orders executed internally through one of the alternative trading systems operated by MLPF&S.
Investors should understand that MLPF&S stands to realize 100% of any profits or losses generated when MLPF&S trades as agent and/or principal in respect of customer orders.
Aside from holdings that MLPF&S may acquire from time-to-time as part of its ordinary market making, block positioning, client facilitation and related hedging activities, MLPF&S (or an affiliate under common control) may acquire equity stakes in market centers as part of a strategic investment. In this regard, MLPF&S or an affiliate owns a minority equity investment stake in the following market centers and therefore stands to participate as a shareholder/investor in the profits that each market center realizes in part from the execution of securities transactions, including transactions that may involve orders for the accounts of MLPF&S customers: (i) BATS Exchange, (ii) BIDS ATS, (iii) NYSE Amex, (iv) Chicago Stock Exchange, (v) Direct Edge Holdings (EDGA Exchange, EDGX Exchange and ISE Stock Exchange), (vi) eBX/LeveL ATS, (vii) NYSE Arca, (viii) NYSE Amex, (ix) CBOE C2, (x) Nasdaq Options Market, (xi) Nasdaq OMX Phlx.
Additionally, MLPF&S is affiliated with Merrill Lynch Professional Clearing Corp. (“ML Pro”), which acts as a market maker on certain options exchanges, including the CBOE, CBOE C2, ISE, BATS Exchange, NYSE Arca, NYSE Amex, Nasdaq Options Market and Nasdaq OMX PHLX. Accordingly, MLPF&S may stand to indirectly share in the profits or losses that ML Pro generates by transacting as options market maker, including transactions that may involve orders for the accounts of MLPF&S customers.
MLPF&S routes customer and proprietary orders to national securities exchanges, alternative trading systems, electronic communications networks, and broker-dealers. Based on their fee schedules, certain market centers offer credits for orders that provide liquidity to their books and assess fees for orders that take liquidity from their books. In some cases, the credits offered by a market center to MLPF&S over a period of time may exceed the charges assessed. MLPF&S participates in the options order flow programs sponsored by the NYSE Amex Options, CBOE, ISE, NYSE Arca and PHLX. These exchange-sponsored programs offer payments for listed option orders that are directed to such options markets.

I’m now researching the UK business documents and will post that info in a separate post. Link to the UK data on their website is here:

Comment in Global Wealth Management documents :

Where this communication is sent by a branch of Merrill Lynch International Bank Limited, please note that mutual fund materials are only directed at persons to whom, and are distributed only to persons to whom, unregulated collective investment schemes may be promoted in accordance with the rules of the UK Financial Services Authority, including in particular Rule 3.11 of the Conduct of Business sourcebook (“relevant persons”). Such investments are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such investments will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on these materials. Merrill Lynch does not operate as a banking entity in all jurisdictions.

while its detailing that only the person whom it was sent to is whom can act on the offer- it reveals that the Financial Services Authority in UK allows Unregulated Collective Investment Schemes!

The Financial Services Authority is in charge of Regulating financial services – so why would it permit unregulated activities to be promoted to anyone?




FOREX WARNING BLOG- do u want me to keep writing it? is it helping anyone?

I feel like no one cares. Like I’m wasting my time.

If you want me to keep going than please say so.

My whole goal is to try protect people from getting scammed by the whole change in the FOREX market from real to simulated. While 9 thousand people have visited my blog- most come to try put advertising in the comment sections.

I’ve had maybe 25 real comments. Is that all the real readers I’ve had?

If this blog has helped you- please let me know, Gathering the information takes a lot of time and is pointless if no one is making use of it.


CFTC makes $463 MILLION in 5 mos in fines while VICTIMS only get partial restitution.

The CFTC is a private agency that acts as industry regulators. They file actions against violators and collect money for the following 5 purposes-

  • restitution
  • loan payoff
  • civil penalties
  • fines
  • sanctions

Restitution and loan payoffs get paid out

The penalties, fines, and sanctions are kept by them.  I added up how much of this category of money they collected from Jan , 2013 to May 31, 2013 – a total of 5 months.


THAT’S JUST SHY OF $463 MILLION in 5 months!  (can you imagine their pay checks!)

463 million that means they gross over 1 BILLION a year. Operating costs can’t justify this level of GREED.

At the same time- victims are getting shorted in restitution. The shortage is being taken by the CFTC. They often pay themselves equal to the victims-

This isn’t like collecting insurance money from an accident! Its acceptable for the lawyers to keep half because the money is being paid for suffering- it’s not a repayment of money lost. The CFTC is acting like its ok to short people of money that was stolen from them! This isn’t ok.


Over and over cases read like this:


  • funds involving at least $22.5 million.
  • pay restitution of $11,437,573 to defrauded customers.
  • civil monetary penalty of over $11.4 million

Customers lost 22.5 million but get back only half!  WHY? Because the CFTC TOOK THE OTHER 11.4 million for themselves! This is just wrong!!!



  • accepted more than $4.7 million from retail public customers
  • restitution of approximately $3.2 million to defrauded customers
  • a $1.5 million civil monetary penalty.

So why do the victims get shorted by 1.5 million ? Why does the CFTC get to take the 1.5 million that would have paid them back in full?  This is unjust!



  • solicited more than $1.3 million
  • pay $1,146,000 in restitution to their defrauded customers
  • and a $1,337,000 civil monetary penalty

That means customers were shorted by 154k while the CFTC kept 1.3 million. How is this acceptable? case link  (

Federal Court Orders Alex Ekdeshman and Paramount Management, LLC, to Pay over $2.4 million in Restitution and a Fine for Fraudulent Foreign Currency Scheme

CFTC Orders Florida Resident Matthew L. Hall to Pay over $200,000 in Restitution for Illegal, Off-Exchange Precious Metals Transactions

CFTC Orders Florida Resident Isaac Grossman and His Company, London Metals Market LLC, to Pay over $121,000 in Restitution for Illegal, Off-Exchange Precious Metals Transactions