CFTC Issues Financial Penalty & Places A Permanent Ban Against Fraudulent FX Trader
Thursday,12/12/2013|22:59GMTby
Adil Siddiqui
The US financial watchdog has issued a civil monetary penalty of $470,000 against Florida resident David Lynch. The accused falsely claimed profits in FX trading and now faces a permanent ban from trading in regulated markets .
A fraudulent FX trader from Florida has been charged by the U.S. Commodity Futures Trading Commission (CFTC), as it enters an Order which requires David R. Lynch to pay over $470,000 in restitution and a civil monetary penalty. Mr. Lynch was transacting in OTC FX markets and running an unregulated pool account.
The Florida-based trader used various techniques to hide the fraud over a five-year period. The CFTC investigation shows that over 14 people were duped by Lynch.
Details in the official notification state that from about December 2008 through July 4, 2013, Lynch operated a commodity pool and fraudulently solicited at least $348,450 from at least 14 pool participants. Lynch falsely told pool participants that he had earned as much as 7 percent per month trading Forex, that they could never lose their principal, and that they could get their funds back at any time. However, Lynch deposited only a portion of his pool participants’ funds in Forex Trading accounts and the trading he did was unprofitable,
The scheme has signs of a Madoff-type scam where Lynch used a certain amount of client money to pay ‘profits’ to other clients. The CFTC’s Order also finds that Lynch misappropriated over $126,000 of his pool participants’ funds by using part of those funds to pay his personal expenses, and the remainder to pay false profits or purported returns of capital to some pool participants in the manner of a Ponzi scheme.
Lynch concealed his losses by creating counterfeit trading statements to show unprofitable trading accounts in the green.
The CFTC has been actively addressing financial fraud after the major Ponzi scheme instigated by Bernard Madoff. Apart from a monetary penalty, fraudsters are barred from dealing in regulated products. Lynch will serve a lifetime ban.
A fraudulent FX trader from Florida has been charged by the U.S. Commodity Futures Trading Commission (CFTC), as it enters an Order which requires David R. Lynch to pay over $470,000 in restitution and a civil monetary penalty. Mr. Lynch was transacting in OTC FX markets and running an unregulated pool account.
The Florida-based trader used various techniques to hide the fraud over a five-year period. The CFTC investigation shows that over 14 people were duped by Lynch.
Details in the official notification state that from about December 2008 through July 4, 2013, Lynch operated a commodity pool and fraudulently solicited at least $348,450 from at least 14 pool participants. Lynch falsely told pool participants that he had earned as much as 7 percent per month trading Forex, that they could never lose their principal, and that they could get their funds back at any time. However, Lynch deposited only a portion of his pool participants’ funds in Forex Trading accounts and the trading he did was unprofitable,
The scheme has signs of a Madoff-type scam where Lynch used a certain amount of client money to pay ‘profits’ to other clients. The CFTC’s Order also finds that Lynch misappropriated over $126,000 of his pool participants’ funds by using part of those funds to pay his personal expenses, and the remainder to pay false profits or purported returns of capital to some pool participants in the manner of a Ponzi scheme.
Lynch concealed his losses by creating counterfeit trading statements to show unprofitable trading accounts in the green.
The CFTC has been actively addressing financial fraud after the major Ponzi scheme instigated by Bernard Madoff. Apart from a monetary penalty, fraudsters are barred from dealing in regulated products. Lynch will serve a lifetime ban.
Aussie Regulator Ramps Up Pump-and-Dump Scheme Warning after Conviction of Four
OnePrime’s Jerry Khargi on Infrastructure, Liquidity & Trust | Executive Interview
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Recorded live at FMLS:25 London, this exclusive executive interview features Jerry Khargi, Executive Director at OnePrime, in conversation with Andrea Badiola Mateos from Finance Magnates.
In this in-depth discussion, Jerry shares:
- OnePrime’s journey from a retail-focused business to a global institutional liquidity provider
- What truly sets award-winning trading infrastructure apart
- Key trends shaping institutional trading, including technology and AI
- The importance of transparency, ethics, and reputation in long-term success
- OnePrime’s vision for growth over the next 12–24 months
Fresh from winning Finance Magnates’ Best Trading Infrastructure Broker, Jerry explains how experience, mentorship, and real-world problem solving form the “special sauce” behind OnePrime’s institutional offering.
🏆 Award Highlight: Best Trading Infrastructure Broker
👉 Subscribe to Finance Magnates for more executive interviews, market insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #OnePrime #InstitutionalTrading #Liquidity #TradingInfrastructure #ExecutiveInterview
Recorded live at FMLS:25 London, this exclusive executive interview features Jerry Khargi, Executive Director at OnePrime, in conversation with Andrea Badiola Mateos from Finance Magnates.
In this in-depth discussion, Jerry shares:
- OnePrime’s journey from a retail-focused business to a global institutional liquidity provider
- What truly sets award-winning trading infrastructure apart
- Key trends shaping institutional trading, including technology and AI
- The importance of transparency, ethics, and reputation in long-term success
- OnePrime’s vision for growth over the next 12–24 months
Fresh from winning Finance Magnates’ Best Trading Infrastructure Broker, Jerry explains how experience, mentorship, and real-world problem solving form the “special sauce” behind OnePrime’s institutional offering.
🏆 Award Highlight: Best Trading Infrastructure Broker
👉 Subscribe to Finance Magnates for more executive interviews, market insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #OnePrime #InstitutionalTrading #Liquidity #TradingInfrastructure #ExecutiveInterview
How does the Finance Magnates newsroom decide which updates are worth covering? #financenews
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What makes an update worth covering in financial media?
According to Yam Yehoshua, Editor-in-Chief at Finance Magnates, editorial focus starts with relevance: stories that serve the industry, support brokers and technology providers, and help decision-makers navigate their businesses.
A reminder that strong financial journalism is built on value, not volume.
What makes an update worth covering in financial media?
According to Yam Yehoshua, Editor-in-Chief at Finance Magnates, editorial focus starts with relevance: stories that serve the industry, support brokers and technology providers, and help decision-makers navigate their businesses.
A reminder that strong financial journalism is built on value, not volume.
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Liquidity as a Business: How Brokers Can Earn More
This webinar will focuses on how brokers can create new revenue streams by launching or enhancing their liquidity business.
John Murillo, Chief Dealing Officer of the B2BROKER group, covers how:
- Retail brokers can launch their own B2B arm to distribute liquidity and boost profitability.
- Institutional brokers can upgrade their liquidity offering and strengthen their market position.
- New entrants can start from scratch and become liquidity providers through a ready-made turnkey solution.
Hosted by B2BROKER, a global fintech provider of liquidity and technology solutions, the session will reveal how to monetize liquidity, accelerate business growth, and increase profitability using the Liquidity Provider Turnkey solution.
📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
Connect with us today:
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👍 Facebook: / https://www.facebook.com/financemagnates/
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🐦 X: https://x.com/financemagnates?
🎥 TikTok: https://www.tiktok.com/tag/financemag...
▶️ YouTube: / @financemagnates_official
This webinar will focuses on how brokers can create new revenue streams by launching or enhancing their liquidity business.
John Murillo, Chief Dealing Officer of the B2BROKER group, covers how:
- Retail brokers can launch their own B2B arm to distribute liquidity and boost profitability.
- Institutional brokers can upgrade their liquidity offering and strengthen their market position.
- New entrants can start from scratch and become liquidity providers through a ready-made turnkey solution.
Hosted by B2BROKER, a global fintech provider of liquidity and technology solutions, the session will reveal how to monetize liquidity, accelerate business growth, and increase profitability using the Liquidity Provider Turnkey solution.
📣 Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: / https://www.linkedin.com/company/financemagnates/
👍 Facebook: / https://www.facebook.com/financemagnates/
📸 Instagram: / https://www.instagram.com/financemagnates_official/?hl=en
🐦 X: https://x.com/financemagnates?
🎥 TikTok: https://www.tiktok.com/tag/financemag...
▶️ YouTube: / @financemagnates_official
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Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
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In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
