Tagged: forex transactions
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.
COMMENT IF YOU WANT THIS BLOG TO BE CONTINUED….
FCA UNAUTHORIZED brokers added to list Aug 2013-Jan 2014
August 26, 2013 Federal Court in Maryland Orders Sidney J. Charles, Jr, The Borrowing Station, LLC, to pay over $600,000 to Settle CFTC Forex Fraud Action
copied from cftc website
resource link http://www.cftc.gov/PressRoom/PressReleases/pr6676-13
August 26, 2013
Federal Court in Maryland Orders Sidney J. Charles, Jr. and his Company, The Borrowing Station, LLC, to pay over $600,000 to Settle CFTC Forex Fraud Action
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal court consent Order of permanent injunction requiring Defendants Sidney J. Charles, Jr., formerly of Bowie, Maryland, and his company, The Borrowing Station, LLC (Borrowing Station) of Bowie, Maryland, jointly and severally to pay $254,236 in restitution and a $350,000 civil monetary penalty in connection with an off-exchange leveraged foreign currency (forex) Ponzi scheme.
The Order, entered on August 23, 2013, by Judge Paul W. Grimm of the U.S. District Court of the District of Maryland, also imposes permanent registration and trading bans against both Defendants and prohibits them from further violations of the Commodity Exchange Act (CEA) and CFTC Regulations, as charged. The court’s Order stems from a CFTC complaint filed on April 23, 2012, that charged Defendants with solicitation fraud, misappropriation, issuing false statements, and registration violations (see CFTC Press Release 6247-12).
The Order finds that, from at least October 2009 through at least July 2011, Defendants fraudulently solicited $369,326 from 18 individuals or entities for participation in a pooled investment vehicle managed by Borrowing Station, through Charles, that traded forex. According to the Order, Defendants solicited pool participants directly and through a website. In their solicitations, Defendants promised substantial investment returns such as 25 percent per year or 10 percent per month, and falsely claimed that pool participant funds were guaranteed against trading losses. The Order finds that Defendants deposited only a portion of pool participant funds into trading accounts and lost a majority of those funds unsuccessfully trading forex.
The Order also finds that Defendants issued checks to pool participants that represented purported “monthly returns” or “return on investment.” However, any purported profits that Defendants paid to pool participants came from the principal of other pool participants in the manner of a Ponzi scheme. In addition, Charles misappropriated pool participant funds to pay for personal expenses and to fund Borrowing Station’s operations, according to the Order.
The Order further finds that Borrowing Station and Charles failed to register as a Commodity Pool Operator (CPO) and Associated Person of a CPO, respectively, as required under the CEA and CFTC Regulations.
The CFTC appreciates the assistance of the U.K. Financial Conduct Authority.
CFTC Division of Enforcement staff responsible for this case are Kara Mucha, Kassra Goudarzi, Michael Solinsky, Gretchen L. Lowe, and Vincent A. McGonagle.
Last Updated: August 26, 2013
aug 28 2013 FXCM trade report- EUR/JAP, USD/JAP proven fast money makers= 11.5k since monday(17win/1loss)
| Trade account #: | 02064349 | Created at: | Jul 19, 2013 3:02:46 AM | Status: | Active | Base currency: | USD |
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| Ticket # | Symbol | Volume | Date | Sold | Bought | Gross P/L | Comm | Rollover | Adj | Net P/L | Condition | Created By | |||||||||||||||
| 83549612 | EUR/CHF | 400,000 | 8/21/13 3:33 PM | 1.23231 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/27/13 3:46 AM | 1.23111 | 521.63 | 0.00 | -19.20 | 0.00 | 502.43 | LE | d172060948001 | |||||||||||||||||||
| 83684611 | NZD/USD | 300,000 | 8/23/13 10:32 AM | 0.77980 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/27/13 4:05 AM | 0.77739 | 723.00 | 0.00 | -37.80 | 0.00 | 685.20 | LE | d172060948001 | |||||||||||||||||||
| 83703931 | EUR/JPY | 400,000 | 8/23/13 3:51 PM | 131.946 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/27/13 4:05 AM | 130.803 | 4,672.24 | 0.00 | -2.40 | 0.00 | 4,669.84 | LE | d172060948001 | |||||||||||||||||||
| 83864653 | EUR/JPY | 400,000 | 8/27/13 4:07 PM | 130.031 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 1:43 AM | 130.138 | 439.86 | 0.00 | 0.80 | 0.00 | 440.66 | Mkt | d172060948001 | |||||||||||||||||||
| 83864768 | NZD/USD | 400,000 | 8/27/13 4:11 PM | 0.77973 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 12:07 PM | 0.78009 | 144.00 | 0.00 | 11.60 | 0.00 | 155.60 | Mkt | d172060948001 | |||||||||||||||||||
| 83865050 | USD/JPY | 400,000 | 8/27/13 4:32 PM | 97.060 | LE | d172060948001 | |||||||||||||||||||||
| 8/28/13 1:43 AM | 97.280 | 904.61 | 0.00 | 0.40 | 0.00 | 905.01 | Mkt | d172060948001 | |||||||||||||||||||
| 83891327 | EUR/JPY | 400,000 | 8/28/13 1:44 AM | 130.133 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 2:06 AM | 130.106 | 111.06 | 0.00 | 0.00 | 0.00 | 111.06 | Mkt | d172060948001 | |||||||||||||||||||
| 83891573 | USD/JPY | 600,000 | 8/28/13 1:50 AM | 97.280 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 2:18 AM | 97.324 | 271.26 | 0.00 | 0.00 | 0.00 | 271.26 | Mkt | d172060948001 | |||||||||||||||||||
| 83892368 | EUR/JPY | 600,000 | 8/28/13 2:07 AM | 130.114 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 2:10 AM | 130.231 | 721.33 | 0.00 | 0.00 | 0.00 | 721.33 | Mkt | d172060948001 | |||||||||||||||||||
| 83892492 | AUD/USD | 400,000 | 8/28/13 2:10 AM | 0.89254 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 2:41 AM | 0.89133 | 484.00 | 0.00 | 0.00 | 0.00 | 484.00 | LE | d172060948001 | |||||||||||||||||||
| 83892529 | EUR/JPY | 600,000 | 8/28/13 2:11 AM | 130.216 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 2:13 AM | 130.194 | 135.65 | 0.00 | 0.00 | 0.00 | 135.65 | Mkt | d172060948001 | |||||||||||||||||||
| 83892632 | EUR/JPY | 600,000 | 8/28/13 2:13 AM | 130.197 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 3:35 AM | 130.392 | 1,200.13 | 0.00 | 0.00 | 0.00 | 1,200.13 | Mkt | d172060948001 | |||||||||||||||||||
| 83893187 | USD/JPY | 600,000 | 8/28/13 2:28 AM | 97.329 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 3:35 AM | 97.485 | 960.15 | 0.00 | 0.00 | 0.00 | 960.15 | Mkt | d172060948001 | |||||||||||||||||||
| 83896199 | EUR/JPY | 600,000 | 8/28/13 3:36 AM | 130.381 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 3:49 AM | 130.539 | -971.82 | 0.00 | 0.00 | 0.00 | -971.82 | Mkt | d172060948001 | |||||||||||||||||||
| 83896291 | EUR/USD | 300,000 | 8/28/13 3:38 AM | 1.33768 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 3:49 AM | 1.33795 | 81.00 | 0.00 | 0.00 | 0.00 | 81.00 | LE | d172060948001 | |||||||||||||||||||
| 83896455 | AUD/JPY | 100,000 | 8/28/13 3:42 AM | 86.968 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 6:30 AM | 86.852 | 119.16 | 0.00 | 0.00 | 0.00 | 119.16 | LE | d172060948001 | |||||||||||||||||||
| 83904972 | AUD/JPY | 500,000 | 8/28/13 3:42 AM | 86.968 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 6:34 AM | 86.799 | 867.97 | 0.00 | 0.00 | 0.00 | 867.97 | LE | d172060948001 | |||||||||||||||||||
| 83896638 | AUD/JPY | 100,000 | 8/28/13 3:46 AM | 87.025 | Mkt | d172060948001 | |||||||||||||||||||||
| 8/28/13 6:34 AM | 86.799 | 232.14 | 0.00 | 0.00 | 0.00 | 232.14 | LE | d172060948001 | |||||||||||||||||||
| Total: | 11,617.37 | 0.00 | -46.60 | 0.00 | 11,570.77 | ||||||||||||||||||||||
| Posted at statement period of time: | 11,617.37 | 0.00 | -10.50 | 0.00 | |||||||||||||||||||||||
8, 13, 2013,civil injunction filed against Worth Group Inc, Andrew Wilshire, Eugenia Mildner, who took more than 73 million. Defrauded precious metals customers.,
copied from the cftc website
resource link: http://www.cftc.gov/PressRoom/PressReleases/pr6666-13
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August 13, 2013
CFTC Charges Florida-Based Worth Group Inc. and Its Principals, Andrew Wilshire and Eugenia Mildner, in Multi-Million Dollar Fraudulent Precious Metals Scheme
CFTC alleges that Defendants, who took in more than $73 million, defrauded customers in connection with precious metals transactions and engaged in illegal off-exchange commodity transactions
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on August 13, 2013, it filed a civil injunctive enforcement action in the U.S. District Court for the Southern District of Florida against Worth Group Inc. (Worth), as well as its owner, Andrew Wilshire, and its sole officer and director, Eugenia Mildner, all of Jupiter, Florida. The CFTC’s Complaint charges that Defendants defrauded retail precious metals customers and engaged in illegal, off-exchange retail commodity transactions from July 16, 2011, through the present.
According to the Complaint, Worth purported to sell physical metal, including gold, silver, platinum, and palladium, on a fully-paid basis, as well as on a financed basis, to hundreds of retail customers located throughout the United States. The Complaint alleges that Worth falsely represented to customers that, within 28 days of a customer’s purchase, Worth would deliver metal either to the customers directly or to a depository that would hold the metal for the customer. The Complaint alleges that pursuant to the scheme, Worth took in over $73 million in customer funds between July 18, 2011, and December 31, 2012.
As alleged, in connection with fully-paid transactions, customers paid the full purchase price to Worth for metals, having been told that Worth would deliver metal in return. The Complaint alleges that from at least August 15, 2011, through November 8, 2012, however, Worth did not actually deliver metal to most customers. Instead, rather than deliver actual metal, Worth’s typical practice after receiving customer money was to purchase metals derivatives in accounts owned by Worth. These derivatives purportedly “covered” customer transactions, but, contrary to Worth’s representations to customers, did not involve the purchase, transfer, or physical delivery of precious metals to Worth, let alone to its retail customers.
Retail customers engaging in financed transactions with Worth were told that they were borrowing money to purchase precious metals. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank), a financed transaction such as that conducted by Worth is an illegal off-exchange transaction unless it results in actual delivery of metal within 28 days. The Complaint alleges that Worth often failed to make such delivery on a timely basis. Worth thus defrauded its customers and subjected them to undisclosed exposure to Worth’s credit, as they were left with only Worth’s commitment to deliver metal rather than the promised metal itself.
The Complaint further alleges that as persons controlling Worth’s precious metals operations, Wilshire and Mildner are liable for Worth’s violations of the Commodity Exchange Act and a CFTC Regulation.
In its continuing litigation against Defendants, the CFTC seeks preliminary and permanent civil injunctions in addition to other remedial relief, including restitution, civil monetary penalties, and disgorgement of ill-gotten gains.
This is the third action the CFTC has brought against entities and individuals who purport to buy precious metals and transfer ownership of those metals to customers, when insufficient metal, or no metal at all, is in fact purchased and delivered (see CFTC Press Releases 6447-12 and 6655-13).
David Meister, the CFTC’s Enforcement Director, stated: “The rules of the new Dodd-Frank law are simple: Companies and individuals who purport to sell precious metals to the retail public, and who say they are supplying real metal, must actually deliver real metal. As today’s case shows, along with previously filed Complaints against Hunter Wise Commodities, LLC and AmeriFirst Management, LLC, we will not hesitate to pursue wrongdoers who say they are providing investments in real precious metals to the American public when in fact they are providing nothing of the sort.”
The CFTC thanks the U.K. Financial Conduct Authority for its assistance in this matter.
The CFTC Division of Enforcement staff members responsible for this matter are Theodore Z. Polley III, Melissa Glasbrenner, William P. Janulis, Scott Williamson, Rosemary Hollinger, and Richard B. Wagner.
CFTC’s Precious Metals Fraud Advisory
In January 2012, the CFTC issued a Precious Metals Consumer Fraud Advisory to alert customers to precious metals fraud. The Advisory states that the CFTC had seen an increase in the number of companies offering customers the opportunity to buy or invest in precious metals. The CFTC’s Advisory specifically warns that companies often fail to purchase any physical metals for their customers, instead simply keeping the customer’s funds. The Advisory further cautions customers that leveraged commodity transactions are unlawful unless executed on a regulated exchange.
Last Updated: August 13, 2013
July 30, 2013 CFTC Charges Florida-Based AmeriFirst Management LLC and Owners, John P. D’Onofrio, George E. Sarafianos, Scott D. Piccininni, in Multi-Million Dollar Fraudulent Precious Metals Scheme
copied from the CFTC website
resource link:http://www.cftc.gov/PressRoom/PressReleases/pr6655-13
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July 30, 2013
CFTC Charges Florida-Based AmeriFirst Management LLC and Its Owners, John P. D’Onofrio, George E. Sarafianos, and Scott D. Piccininni, in Multi-Million Dollar Fraudulent Precious Metals Scheme
CFTC alleges that the Defendants engaged in illegal, off-exchange commodity transactions and deceived retail customers regarding financed precious metals transactions
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed a civil injunctive enforcement action in the U.S. District Court for the Southern District of Florida against AmeriFirst Management LLC (AML) of Fort Lauderdale, Florida, and its owners, John P. D’Onofrio of Fort Lauderdale, George E. Sarafianos of Lighthouse Point, Florida, and Scott D. Piccininni of Fort Lauderdale. The CFTC Complaint charges the Defendants with operating a precious metals scheme where the Defendants marketed illegal, off-exchange financed commodity transactions and fraudulently misrepresented the nature of those transactions.
According to the Complaint, filed on July 29, 2013, AML held itself out as a precious metals wholesaler and clearing firm, operating through a network of more than 30 precious metals dealers. As alleged, these dealers solicited retail customers to invest in financed precious metals transactions, where a customer gave a percentage deposit of the total value of the metal, typically 20%, and the dealer supposedly made a loan to the customer for the remaining 80%, supposedly sold the customer the total metal amount, and supposedly allocated the total metal amount at a depository to be held for the customer.
The Complaint alleges that AML created customer documents that represented that the dealer had in fact made such a loan and sold and allocated the total metal amount to the customer. However, these documents were false because the dealer never made a loan to the customer, nor did the dealer sell or allocate any metal to the customer, according to the Complaint. Further, the Complaint alleges that although there was no loan and no metal was allocated to the customer, AML charged the customer finance and storage fees.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 expanded the CFTC’s jurisdiction over transactions like these and requires that such transactions be executed on or subject to the rules of a board of trade, exchange, or commodity market, according to the Complaint. This new requirement took effect on July 16, 2011. The Complaint alleges that all of the Defendants’ financed commodity transactions took place after this date and were illegal. The Complaint also alleges that the Defendants defrauded customers in these financed commodity transactions.
In its continuing litigation, the CFTC seeks a permanent injunction from future violations of federal commodities laws, permanent registration and trading bans, restitution to defrauded customers, disgorgement of ill-gotten gains, and civil monetary penalties.
The CFTC Division of Enforcement staff responsible for this action are David Chu, Mary Beth Spear, Eugene Smith, Patricia Gomersall, Ava Gould, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
CFTC’s Precious Metals Fraud Advisory
In January 2012, the CFTC issued a Precious Metals Consumer Fraud Advisory to alert customers to precious metals fraud. The Advisory states that the CFTC had seen an increase in the number of companies offering customers the opportunity to buy or invest in precious metals. The CFTC’s Advisory specifically warns that companies often fail to purchase any physical metals for their customers, instead the companies simply keep the customers’ funds. The Advisory further cautions consumers that leveraged commodity transactions are unlawful unless executed on a regulated exchange.
Last Updated: July 30, 2013
July 25, 2013 Federal Court in Illinois Orders Michael Peskin to Pay More Than $480,000 and Imposes Other Sanctions to Settle Charges that Peskin Violated A Permanent Trading Ban
COPIED FROM THE CFTC WEBSITE
RESOURCE LINK:http://www.cftc.gov/PressRoom/PressReleases/pr6652-13
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July 25, 2013
Federal Court in Illinois Orders Michael Peskin to Pay More Than $480,000 and Imposes Other Sanctions to Settle Charges that Peskin Violated A Permanent Trading Ban
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge John F. Grady of the U.S. District Court for the Northern District of Illinois entered a Consent Order permanently enjoining Michael Peskin from trading in violation of a CFTC trading ban. The Order was entered on July 24, 2013 and arises out of an enforcement action filed against Peskin in CFTC v. Michael Peskin, No. 13 cv 5211 (N. D. Illinois July 22, 2013), a case stemming from charges that Peskin had violated a permanent trading ban. The Court also ordered Peskin to pay disgorgement of $239,339.78 and a civil monetary penalty of $250,000.
The Commission imposed a trading ban against Peskin in 1993 as a sanction after finding that Peskin had fraudulently allocated trades to benefit himself at the expense of his customers in an administrative proceeding entitled In the Matter of Peskin, CFTC Docket No. 89-1 [1992-1994 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 25,660 (CFTC Feb. 9, 1993).
The CFTC complaint alleges that Peskin violated a permanent trading ban entered against him in 1993 by trading for himself through the individual trading accounts of others from at least February 2006 through December 2012. The complaint also alleged that Peskin profited by $239,339.78 by trading in violation of the ban.
The Order finds that, beginning in at least February 2006, Peskin arranged with other persons to assume the identity of these other persons in order to trade for himself, both telephonically and electronically, through the accounts of those other persons.
CFTC Division of Enforcement staff responsible for this case are Susan Padove, Judy McCorkle, Elizabeth M. Streit, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: July 25, 2013
July 2013- what your NOT being told: THE FOREIGN EXCHANGEX is becoming a SIMULATED MARKET. (gameing platform)
copied from the investopedia website which is partnered with FXCM!
resource link: http://www.investopedia.com/terms/f/foreign-exchange.asp
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I checked today to see if there has been any progress in how well the public is being informed about the true nature of “forex” trading. Namely that it is now simulated (fake) trading for all accounts holding less than 10 million dollars.
Instead of progress- they are hiding it down deeper- However some of the previous misleading definitions are still posted on Investopedia.
What is noticeably missing is mention of on vs off exchange currency. They have started top vanish the old meaning of foreign exchange from the foreign exchange its self. All while not telling the public anything!
People FOREIGN EXCHANGE TRADING is no longer real. Its an ONLINE GAMING PLATFORM, Your not trading against other people- your trading against a computer program. A program the broker is able to manipulate as needed to make sure you loose your money. Read the fine print on your trading agreement- you agreed to them doing it!
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Definition of ‘Forex – FX’
The market in which currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.
Investopedia explains ‘Forex – FX’
There is no central marketplace for currency exchange; trade is conducted over the counter. The forex market is open 24 hours a day, five days a week and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.
The forex is the largest market in the world in terms of the total cash value traded, and any person, firm or country may participate in this market.
Definition of ‘Forex Market’
The market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day.
Investopedia explains ‘Forex Market’
The foreign exchange markets isn’t dominated by a single market exchange, but involves a global network of computers and brokers from around the world. Central banks use their massive buying and selling capabilities to alter exchange rates through their open market activities and in many cases will do so not with profit in mind, but rather for any number of policy reasons. Forex brokers act as market makers as well, and may post bid and ask prices for a currency pair that differs from the most competitive bid in the market.
Definition of ‘Foreign Exchange Market’
The market in which participants are able to buy, sell, exchange and speculate on currencies. Foreign exchange markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The forex market is considered to be the largest financial market in the world.
Investopedia explains ‘Foreign Exchange Market’
Because the currency markets are large and liquid, they are believed to be the most efficient financial markets. It is important to realize that the foreign exchange market is not a single exchange, but is constructed of a global network of computers that connects participants from all parts of the world.
___________________________________________________________________This is all such BULL! Participants are connected to brokers gaming platforms. End of story. WHY DOESNT IT TELL THE TRUTH???? ITS A SIMULATED MARKET ENVIRONMENT!!!
June 20, 2013 Federal Court Orders Toby D. Hunter. Prestige Capital Advisors,D2W Capital Management- Pay over $11.7 Million for Fraud
copied from the cftc web site
resource link http://www.cftc.gov/PressRoom/PressReleases/pr6615-13
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June 20, 2013
Federal Court in North Carolina Orders Toby D. Hunter, Prestige Capital Advisors, and D2W Capital Management to Pay over $11.7 Million for Fraud and other Violations in Commodity Pool and Managed Foreign Currency (Forex) Schemes
Washington, DC -The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained federal court orders requiring Defendants Toby D. Hunter, Prestige Capital Advisors, LLC (Prestige), and D2W Capital Management, LLC (D2W), all of Charlotte, North Carolina, together to pay more than $4.3 million in restitution to defrauded pool and managed account clients and imposing civil monetary penalties of approximately $7.5 million. The court’s grant of default judgment against Prestige and D2W and a Consent Order of Permanent Injunction against Hunter stems from a CFTC enforcement action filed September 6, 2011, charging Defendants with fraudulent solicitation, misappropriation, and regulation violations (see CFTC Press Release 6110-11). The Orders also impose permanent trading and registration bans against the Defendants and prohibit them from violating the anti-fraud and other provisions of the Commodity Exchange Act (CEA) and CFTC Regulations, as charged.
The Honorable Max O. Cogburn, Jr. of the U.S. District Court for the Western District of North Carolina entered an Order of Default Judgment and Permanent Injunction against Defendants Prestige and D2W on January 25, 2013, imposing civil monetary penalties of approximately $6.9 million on Prestige and $280,000 on D2W. The court entered a subsequent Order on February 22, 2013, requiring Prestige to pay restitution of over $4.1 million and D2W to pay restitution of $85,250.
The court found that Prestige fraudulently solicited and accepted more than $4.7 million from multiple pool participants for investment in one or more commodity pools that traded among other things, commodities and futures contracts. The court specifically found that in soliciting pool participants, Prestige posted false trading returns on a website called BarclayHedge, where fund managers could post unverified historical returns for prospective clients to view, sent false trading results to at least one Prestige pool participant, and issued false account statements. Furthermore, according to the Orders, approximately $2.3 million of pool participant funds was misappropriated by Prestige, and D2W, a managed forex account service, sent false account statements to at least one client.
Subsequently, on June 13, 2013, Judge Cogburn entered a consent Order of Permanent Injunction settling charges stemming from the same violations of the CEA and CFTC Regulations against Hunter. The Order requires Hunter to pay approximately $85,000 in restitution to D2W’s clients, $40,000 in restitution to Prestige pool participants, and also imposes a $280,000 civil monetary penalty.
Hunter was indicted by the U.S. Attorney’s Office for the Western District of North Carolina (Charlotte office) for criminal activity related to the Prestige matter.
The CFTC thanks the British Columbia Securities Commission and the U.K. Financial Conduct Authority for their assistance.
CFTC Division of Enforcement staff members responsible for this case are Eugenia Vroustouris, Daniel Jordan, Michael Loconte, Erica Bodin, Rick Glaser, and Richard Wagner.
Last Updated: June 20, 2013
The Forex Trading Scam Exposed:Facts, Proof, Names, legal actions: NFA created it. 