FX Options Scam Charged by US Court - $2.16 Million Penalty and Trading Ban
- A US court has issued a charge against two individuals and a company for misdoings. The two were charged $2.16 million for FX derivatives fraud and handed down a permanent trading ban.
Fraudsters running an international racket across the US and Brazil were charged by a Federal Court in New York which imposed a $2.16 million penalty and issued a permanent trading ban against Michael Kardonick, Gary Shapoff, and Atwood & James for 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 options fraud and misappropriation.
A long-standing case dating back six years has finally been granted justice by the US legal system. With an initial complaint filed in 2009 against the two fraudsters and their companies, Atwood & James Ltd. and Atwood & James SA, the courts handed out penalties and charges against the four in question.
The CFTC's complaint had charged the defendants with fraudulently soliciting retail clients to trade FX options and charged Atwood and Kardonick with misappropriating client funds.
The fraud took place between 2001 and 2008, and targeted individuals from across the world including North America and Europe. The individuals had set up a company online and used it to solicit clients.
The CFTC's investigations found that the defendants who claimed to be professional traders had little or no experience of financial markets trading. In fact, only personal trading accounts were found for Kardonick which traded over a five year period. He sustained severe losses of $1.7 million trading in financial derivatives.
Both Kardonick and Shapoff have been known to the legal circle for their previous convictions of tax evasion and Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term.
Fraudsters running an international racket across the US and Brazil were charged by a Federal Court in New York which imposed a $2.16 million penalty and issued a permanent trading ban against Michael Kardonick, Gary Shapoff, and Atwood & James for 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 options fraud and misappropriation.
A long-standing case dating back six years has finally been granted justice by the US legal system. With an initial complaint filed in 2009 against the two fraudsters and their companies, Atwood & James Ltd. and Atwood & James SA, the courts handed out penalties and charges against the four in question.
The CFTC's complaint had charged the defendants with fraudulently soliciting retail clients to trade FX options and charged Atwood and Kardonick with misappropriating client funds.
The fraud took place between 2001 and 2008, and targeted individuals from across the world including North America and Europe. The individuals had set up a company online and used it to solicit clients.
The CFTC's investigations found that the defendants who claimed to be professional traders had little or no experience of financial markets trading. In fact, only personal trading accounts were found for Kardonick which traded over a five year period. He sustained severe losses of $1.7 million trading in financial derivatives.
Both Kardonick and Shapoff have been known to the legal circle for their previous convictions of tax evasion and Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term.