Puerto Rico trader fined $3.7 million
A Puerto Rican FX fund manager has been fined by a United States district court in Puerto Rico for dealing fraudulently in Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv trading.
Angel Collazo owner of ACJ Capital Inc was accused by US regulator CFTC of fraudulently trading on behalf of clients, fraudulently soliciting them and making false claims of profitability.
The complaint was filed in May 2011, Angel was accused of soliciting $1.7 million from at least 18 individuals, it was found that Angel was issuing counterfeit statements showing profits when the accounts were in loss.
The courts have enforced a fine on Collazo and he was ordered to pay $1.5 million in restitution, $551,000 in disgorgement of gains and $1.7 million in civil penalties.
The order also permanently prohibits Collazo and his company from trading on any CFTC-registered entity and from engaging in certain commodity-related activities.
On Dec. 13, Collazo pleaded guilty to wire fraud and money-laundering charges in a related criminal action. Angel's sentencing is currently scheduled for the first week of June 2012.
The CFTC have been handing out fines since the new Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders regulations were implemented. The US regulators want to ensure there is transparency in the OTC FX market and brokers are required to report the number of clients who are profitable.
A Puerto Rican FX fund manager has been fined by a United States district court in Puerto Rico for dealing fraudulently in Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv trading.
Angel Collazo owner of ACJ Capital Inc was accused by US regulator CFTC of fraudulently trading on behalf of clients, fraudulently soliciting them and making false claims of profitability.
The complaint was filed in May 2011, Angel was accused of soliciting $1.7 million from at least 18 individuals, it was found that Angel was issuing counterfeit statements showing profits when the accounts were in loss.
The courts have enforced a fine on Collazo and he was ordered to pay $1.5 million in restitution, $551,000 in disgorgement of gains and $1.7 million in civil penalties.
The order also permanently prohibits Collazo and his company from trading on any CFTC-registered entity and from engaging in certain commodity-related activities.
On Dec. 13, Collazo pleaded guilty to wire fraud and money-laundering charges in a related criminal action. Angel's sentencing is currently scheduled for the first week of June 2012.
The CFTC have been handing out fines since the new Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders regulations were implemented. The US regulators want to ensure there is transparency in the OTC FX market and brokers are required to report the number of clients who are profitable.