The US Commodity Futures Trading Commission has managed to find the dirt on another deceitful FX firm. The CFTC has filed a civil enforcement action in the US District Court for the Eastern District of New York charging Madison Dean of New York and its principals, George Athanasatos with fraudulently soliciting approximately 19 persons to invest approximately $415,000 in managed trading accounts to trade off-exchange foreign currency contracts on a leverage or margined basis. None of the defendants has ever been registered with the CFTC.
The CFTC complaint, filed on May 8, 2012, alleges that from approximately December 2008 through approximately July 2010, defendants Madison Dean, Athanasatos, and Dodge, through an Internet website, written solicitation materials, and other actions, misrepresented and omitted material facts about Madison Dean, including the background and qualifications of Madison Dean employees and the firm’s performance record, to create a false impression that it was a well-established and successful company.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
The complaint further alleges that Madison Dean’s customers lost approximately USD250,000, “as a result of its poor trading.” As further alleged, after being in operation for a little over a year, during which time the firm collected approximately $112,000 in commissions and fees, Madison Dean shut down its operation with no notice to its customers and no way for those customers to contact the company or anyone associated with it. In its continuing litigation, the CFTC seeks civil monetary penalties, restitution, disgorgement of ill-gotten gains, trading and registration bans, and preliminary and permanent injunctions against further violations of the Commodity Exchange Act, as charged.