CFTC Charges Florida Resident and His Panamanian Corporation with Fraud and Misappropriation
At least $16.4 million in customer funds solicited by making false statements, with more than $2 million misappropriated for personal use.
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of an enforcement action against Trader’s International Return Network (TIRN), a Panamanian corporation, and its president David Merrick of Apopka, Fla., charging them with solicitation fraud and misappropriation of customer funds involving at least $16.4 million.
According to the CFTC complaint, filed on October 14, 2009, in the U.S. District Court for the Middle District of Florida, TIRN represented itself as a “private investment club” that provided various investment services, including foreign currency (forex) investing, through its purported Real Century forex trading program. As alleged, the defendants accepted at least $16.4 million from customers to participate in TIRN’s investment program; however, no customer funds were invested as described on the TIRN website and in TIRN’s written materials.
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Hi everyone

Yesterday, the U.S Commodity Futures Trading Commission (CFTC) released financial data for Futures Commission Merchants (FCM) for the month of August 2009.

http://www.cftc.gov/marketreports/financialdataforfcms/index.htm

Oanda leads the retail industry in terms of excess of net capital with a pile of $142mio, followed by Gain Capital, Global Futures & Forex (GFT) and Forex Capital Markets (FXCM).

We can observe with satisfaction that IKON Global Markets improves its ranking and gains 3 positions, leaving the honor of being the less capitalized brokerage firm in the US to Easy Forex US with an excess of net capital of almost half a million.

On the negative side, to highlight the fall of the net capital of both GFT - from 65 mio to 56 - and Gain Capital - from 67 to 61.

Minimum Net Capital = $20 million
Easy Forex US $20,490,925 (Excess Net Capital $490,925)
Advanced Markets $20,650,540 (Excess Net Capital $650,540)
Alpari US $21,409,108 (Excess Net Capital $1,409,108)
Ikon Global Markets $21,226,238 (Excess Net Capital $1,226,238)
MB Trading $21,990,965 (Excess Net Capital $1,990,965)
Forex Club Financial Company $24,664,036 (Excess Net Capital $4,664,036)
Capital Market Services LLC - CMS Forex $25,428,571 (Excess Net Capital $5,428,571)
Peregrine Financial Group Inc - PFG $33,291,134 (Excess Net Capital $13,291,134)
InterbankFX $35,064,682 (Excess Net Capital $15,064,682)
FX Solutions $45,800,258 (Excess Net Capital $25,800,258)
Forex Capital Markets LLC - FXCM $67,728,355 (Excess Net Capital $47,728,355)
Global Futures & Forex Ltd - GFT Forex $76,429,474 (Excess Net Capital $56,429,474)
Gain Capital Group LLC $81,436,967 (Excess Net Capital $61,436,967)
Oanda Corporation $162,306,790 (Excess Net Capital $142,306,790)

Francesc

CFTC Charges North Carolina Foreign Currency Firm CapitalStreet Financial LLC and its Principal Sean F. Mescall with Operating a $1.3 Million Forex Ponzi Scam
Defendants allegedly misappropriated approximately $875,000 in customer funds for personal use and to further the scheme; federal court freezes defendants’ assets and protects books and records.

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today charged CapitalStreet Financial LLC (CSF) and Sean F. Mescall, both of Charlotte, N.C., with operating a Ponzi scheme involving the fraudulent solicitation of at least $1.3 million from at least 69 customers in connection with foreign currency (forex) trading. Defendants are also charged with misappropriating approximately $875,000 of customer funds.
On September 9, 2009, the same day the complaint was filed, the Honorable Robert J. Conrad, Jr. of the U.S. District Court for the Western District of North Carolina, Charlotte Division, entered an order freezing the defendants’ and relief defendants’ assets, protecting books and records and scheduling a preliminary injunction hearing in the matter on September 16, 2009.
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Hi everyone

Yesterday, the U.S Commodity Futures Trading Commission (CFTC) released financial data for Futures Commission Merchants (FCM) for the month of July 2009.

http://www.cftc.gov/marketreports/financialdataforfcms/index.htm

Oanda leads the retail industry in terms of excess of net capital with a pile of $142mio, followed by Gain Capital, Global Futures & Forex and Forex Capital Markets.

Minimum Net Capital = $20 million
Ikon Global Markets $20,391,084 (Excess Net Capital $391,084)
Advanced Markets $20,695,075 (Excess Net Capital $695,075)
Easy Forex US $20,712,028 (Excess Net Capital $712,028)
Alpari US $21,245,007 (Excess Net Capital $1,245,007)
MB Trading $21,703,719 (Excess Net Capital $1,703,719)
Forex Club Financial Company $24,640,392 (Excess Net Capital $4,640,392)
Capital Market Services LLC - CMS Forex $25,682,836 (Excess Net Capital $5,682,836)
Peregrine Financial Group Inc - PFG $32,496,349 (Excess Net Capital $12,496,349)
InterbankFX $35,183,101 (Excess Net Capital $15,183,101)
FX Solutions $47,266,539 (Excess Net Capital $27,266,539)
Forex Capital Markets LLC - FXCM $65,161,426 (Excess Net Capital $45,161,426)
Global Futures & Forex Ltd - GFT Forex $85,132,157 (Excess Net Capital $65,132,157)
Gain Capital Group LLC $87,048,766 (Excess Net Capital $67,048,766)
Oanda Corporation $162,004,186 (Excess Net Capital $142,004,186)

Francesc

OCC To Support SEC, CFTC Merger by emii.com
The Options Clearing Corporation (OCC) is planning to back a merger between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Financial News reports. Several U.S. exchanges will testify at a meeting in Washington on Sept. 3., regarding regulatory changes in the markets.
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note: The Options Clearing Corporation (OCC), founded in 1973, is the world’s largest equity derivatives clearing organization.

SEC, CFTC May Sharpen Rules on Market Manipulation by Bloomberg
Sept. 3 (Bloomberg) — The heads of the Securities and Exchange Commission and Commodity Futures Trading Commission said they are weighing changes to margin requirements, insider- trading rules and new financial product approvals as part of efforts to coordinate oversight of the derivatives market.
The agencies will seek to close gaps in oversight, eliminate duplicative rules that allow for “regulatory arbitrage” and bring consistency to the supervision of similar products, firms and markets, CFTC Chairman Gary Gensler said today at a joint meeting of the two agencies in Washington.
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SEC and CFTC discuss setting up joint group to rein in fraud by MarketWatch
WASHINGTON (MarketWatch) - The Securities and Exchange Commission and Commodity Futures Trading Commission should set up a joint panel to conduct investigations into complex financial hybrid products that fall under both jurisdictions, said panelists at a joint hearing of both commissions on Thursday.
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Foreign currency scammers to pay $4.2M
By South Florida Business Journal
The Commodity Futures Trading Commission said Friday that it obtained federal court orders for more than $4 million in civil monetary penalties against two Miami businessmen who ran a foreign currency options scam.
The enforcement action dates to June 2004, when the commission alleged that the defendants committed fraud in connection with the offer of illegal foreign currency contracts to retail customers, who were defrauded of more than $1.8 million.
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U.S. District Court Orders Five Defendants in CFTC Action to Pay More than $4 million in Civil Penalties for Engaging in Illegal Foreign Currency Options Scheme by CFTC

Is this going to end?…

CFTC Charges Charlotte, North Carolina Couple Sidney and Charlotte Hanson and their Companies with Operating a $22.5 Million Foreign Currency Ponzi Scheme

Francesc

Hi everyone

Yesterday, the U.S Commodity Futures Trading Commission (CFTC) released financial data for Futures Commission Merchants (FCM) for the month of May 2009.

http://www.cftc.gov/marketreports/financialdataforfcms/index.htm

Easy Forex US, Ikon Global Markets, MB Trading and Advanced Markets jumped above minimum required capital of $20 mio in May, so now the list of companies above required capital is as follows:

Above $20 million net capital
Advanced Markets $20,722,551 (previously $19,796,273)
Easy Forex US $20,928,968 (previously $15,549,565)
Ikon Global Markets $21,247,886 (previously $16,355,818)
MB Trading $21,360,551 (previously $17,100,859)
Alpari US $22,312,195 (previously $20,975,556)
Forex Club Financial Company $25,427,601 (previously $21,795,577)
Capital Market Services LLC - CMS Forex $29,788,506 (previously $29,6678)
Peregrine Financial Group Inc - PFG $36,465,727 (previously $36,843,820)
InterbankFX $35,611,164 (previously $36,507,727)
FX Solutions $48,262,204 (previously $41,546,274)
Forex Capital Markets LLC - FXCM $63,999,806 (previously $60,472,142)
Global Futures & Forex Ltd - GFT Forex $79,368,858 (previously $80,693,021)
Gain Capital Group LLC $98,125,651 (previously $90,801,214)
Oanda Corporation $159,062,073 (previously $159,739,419)

Francesc

Eldon A. Gresham Targeted Persons of the Christian Faith, Soliciting More Than $15 Million; Court Freezes Assets

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today charged Eldon A. Gresham, d/b/a The Gresham Company, of Peachtree City, Georgia, with operating a multi-million dollar foreign currency (forex) Ponzi scheme, specifically targeting persons of the Christian faith to invest in the scheme.

The CFTC complaint, filed under seal on July 2, 2009, in the U.S. District Court for the Northern District of Georgia, alleges that, from at least January 2004, Gresham solicited more than $15 million from more than 75 customers to trade off-exchange forex contracts. Gresham allegedly claimed to prospective customers that he was successful trading forex because the “Lord had blessed him.” Gresham also told prospective customers that he was offering his program to a limited number of fellow Christians for a limited time, according to the complaint.

Gresham, according to the complaint, solicited some customers to invest supposedly by opening and funding an account for them based on their friendship over the years. After receiving a string of emailed statements showing purported extraordinary monthly returns – of between four and 13 percent – many customers began to contribute their personal funds into accounts with Gresham.

Gresham allegedly persuaded some customers to temporarily withdraw their retirement funds by telling them that he could earn five to 10 percent a month on these funds. He claimed that by doing so, customers could attain profits in less than 60 days. According to Gresham this would enable them to transfer the principal — and expected large profits — back into the retirement accounts before an early withdrawal tax penalty would be assessed. Additionally, Gresham told customers that their risk was limited because he was a conservative trader; he told a least one customer that her investment with Gresham was insured by the federal government and the biggest forex exchange in the United States.
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CFTC Sanctions Foreign Currency Broker Who Allowed Confidential Personal Information of its Customers to Appear on the Internet

Interbank FX, LLC Ordered to Pay $200,000 and Establish Systems to Ensure the Safety of Consumer Records and Information

Washington, DC – The U.S. Commodity Futures Trading Commission today simultaneously filed and settled charges against Interbank FX, LLC (Interbank), ordering Interbank to pay a $200,000 civil monetary penalty for violating rules designed to protect the confidential personal information of consumers. The CFTC order also requires Interbank to establish a comprehensive security program that provides administrative, technical, and physical safeguards for the protection of consumer records and information.

According to the order, in March 2008, an Interbank customer discovered that personal information about herself, such as her name, address, phone number, date of birth, social security number, driver’s license number, and bank account numbers was accessible on the Internet through a Google search. Interbank began an immediate investigation and learned that one of its Information Technology employees had placed files containing the confidential personal consumer information of approximately 13,000 customers and prospective customers on a personal website that was accessible on the Internet for at least a year. This security breach was possible because Interbank did not have policies or procedures directed to the protection of confidential consumer information at the time its employee uploaded the information to the Internet.
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