CFTC: Ralph Metters Ordered to Pay $500,000 Penalties for Forex Fraud
- Metters is also required to reimburse victims with a further $500,000 resulting from fraudulent gains.
The US Commodity Futures Trading Commission (CFTC) announced today that a California court has ordered Ralph Metters to pay a $500,000 penalty resulting from fraudulent gains in connection with off-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 Read this Term foreign currency (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) violations of the Commodity Exchange Act (CEA).
The court order has also permanently prohibited Metters, also known as Malachai “Moe” Levy, from further violations of the CEA and has imposed permanent trading and registration bans on him.
History
The decision stems from a CFTC enforcement complaint filed on 20 August, 2014 charging Metters with fraudulently soliciting $500,000 from a member of the public in connection with off-exchange forex transactions commencing in October 2013.
Metters was said to have falsely represented to investors that he would use their money to engage in forex investments which would be kept in escrow until they authorised its use. Victims accordingly invested at least $745,000.
However, Metters withdrew the invested amount out of escrow without investors’ permission and knowingly misappropriated the funds.
In a related criminal action, Metters recently pleaded guilty to conspiracy to commit wire fraud. He was sentenced in May 2016 to 9 years imprisonment, and ordered to reimburse the victim with $500,000, as well as additional restitution to other victims of other criminal violations.
The US Commodity Futures Trading Commission (CFTC) announced today that a California court has ordered Ralph Metters to pay a $500,000 penalty resulting from fraudulent gains in connection with off-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 Read this Term foreign currency (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) violations of the Commodity Exchange Act (CEA).
The court order has also permanently prohibited Metters, also known as Malachai “Moe” Levy, from further violations of the CEA and has imposed permanent trading and registration bans on him.
History
The decision stems from a CFTC enforcement complaint filed on 20 August, 2014 charging Metters with fraudulently soliciting $500,000 from a member of the public in connection with off-exchange forex transactions commencing in October 2013.
Metters was said to have falsely represented to investors that he would use their money to engage in forex investments which would be kept in escrow until they authorised its use. Victims accordingly invested at least $745,000.
However, Metters withdrew the invested amount out of escrow without investors’ permission and knowingly misappropriated the funds.
In a related criminal action, Metters recently pleaded guilty to conspiracy to commit wire fraud. He was sentenced in May 2016 to 9 years imprisonment, and ordered to reimburse the victim with $500,000, as well as additional restitution to other victims of other criminal violations.