Lesson learned? Right or wrong, don't (overly) fight your regulator. In normal times, a $100 million fine levied against a respected, regulated, licensed broker would make headlines. Big headlines. But today's announcement that the CFTC, with its staff now back at work after the US Government shutdown, has fined JP Morgan (NYSE:JPM) $100 million over…
Read moreLesson learned? Don't fight your regulator, even if you think you're right. The CFTC (and NFA) seems to have it in for FXDD, unless this is just a coincidence (which we believe it is not). For the second time in just two weeks, the CFTC has announced fines against the leading forex broker for two…
Read moreRJO fined $125,000 and Vision Financial $525,000, both related to handling of client funds. Futures brokers RJ O'Brien (RJO) and Vision Financial Markets LLC were each sanctioned by the CFTC for issues tied to client funds. RJO's $125,000 fine was for commingling secured foreign futures and options customer funds, with segregated domestic futures and options customer…
Read moreiFinix and CEO Benhope Marlon Munroe falsified bank statements and didn't meet minimum capital requirements. The CFTC has imposed a permanent trading and registration ban against introducing broker iFinix Futures (which also did business under the name Pro-Active Futures) and its principal Benhope Marlon Munroe for providing falsified bank account documents to the NFA during its audit of iFinix, in…
Read moreAlex Ekdeshman and his company Paramount Management LLC used the vast majority of customer funds for business expenses. The CFTC has announced that it has obtained a federal court order against Alex Ekdeshman of Holmdel NJ and his company Paramount Management LLC, requiring $1.1 million in restitution to their defrauded customers plus a $1.3 million monetary…
Read moreSame old story, client funds used to repay old investors and to pay personal expenses. The CFTC has obtained a federal court order against Sidney J. Charles, Jr. and his Company, The Borrowing Station, requiring both to pay more than $600,000 following the discovery of a forex ponzi scheme run by Charles -- $254,000 to…
Read moreVarlesi's Gold Coast Futures and Forex used just $220,000 of the $1.7M he accepted from clients to actually trade. The CFTC has obtained a federal court order against Christopher Varlesi of Chicago and his company Gold Coast Futures and Forex, requiring Varlesi to pay $1.3 million -- $638,000 to defrauded investors plus a $700,000 penalty. The…
Read moreIt is not just smaller brokers the CFTC is going after when it comes to segregating client funds. The CFTC is making it very clear to brokers large and small that securing and segregating client funds is its priority number one, and that each broker had better be careful to stick to the letter of…
Read moreCollazo and his companies concealed trading losses, and misappropriated client funds for personal uses. The CFTC has obtained a federal court order requiring defendants Angel F. Collazo (formerly of Puerto Rico) and his companies, ACJ Capital (ACJ) and Solid View Capital LLC to pay $843,444 in restitution plus a $750,000 civil monetary penalty for fraudulently…
Read moreBanc de Binary, one of a handful of CySEC-regulated binary options brokers, has been charged with taking US clients. LeapRate Exclusive.... Assuming the charges stick, it will be interesting to see if the EU regulators involved -- Cyprus' CySEC and the UK's FCA -- cooperate with the CFTC in the US, and enforce whatever penalties…
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