CFTC Files Charges Against FuturesFX for Alleged FX Scam
- The charges are also against Simon Jousef, the owner of FuturesFX.
The Commodity Futures Trading Commission (CFTC) has filed a civil lawsuit against Canadian resident Simon Jousef and his business FuturesFX for an alleged foreign exchange (forex) scam.
The US regulator filed the lawsuit in the US District Court for the Southern District of New York. The CFTC has charged the defendants with fraudulently soliciting people to subscribe to a trading system, which they claimed included a “live” 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 and commodity futures Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term room, educational videos, and online support.
“The defendants allegedly charged members up to approximately $9,000 to receive this access to the trading system. The CFTC’s complaint alleges that, as a result of the fraudulent solicitation scheme, the defendants received approximately $1.3 million in subscription fees from more than 300 members located in the United States and other countries,” the statement said.
Jousef and FuturesFX have also been charged by the United States regulator with making false or misleading statements to the National Futures Association (NFA) when submitting annual CTA registration updates concerning FuturesFX’s predecessor company.
In particular, the CFTC complaint states that between at least the 1st of July 2014 until around the end of January 2016, the defendants promoted and sold access to the trading system, which they did so fraudulently.
CFTC: Jousef and FuturesFX mislead consumers
Some of the tactics they used, according to the regulator, was making false or misleading statements and ommissions on the company’s websites and in email advertisements. This includes claims that Jousef was trading forex and commodity futures in a live trading room, when in fact, he never actually traded and only made hypothetical or simulated trades.
The defendants also allegedly claimed that Jousef’s traders were profitable, however, as he never made any trades, this is false. In addition, false and misleading statements were made about Jousef’s experience with trading, including that Jousef was registered with the CFTC as a commodity trading advisor (CTA) when, in fact, he was not.
The watchdog is seeking a number of measures against Jousef and his business FuturesFX. These are the return of ill-gotten gains, restitution to defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws, the statement said.
The Commodity Futures Trading Commission (CFTC) has filed a civil lawsuit against Canadian resident Simon Jousef and his business FuturesFX for an alleged foreign exchange (forex) scam.
The US regulator filed the lawsuit in the US District Court for the Southern District of New York. The CFTC has charged the defendants with fraudulently soliciting people to subscribe to a trading system, which they claimed included a “live” 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 and commodity futures Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term room, educational videos, and online support.
“The defendants allegedly charged members up to approximately $9,000 to receive this access to the trading system. The CFTC’s complaint alleges that, as a result of the fraudulent solicitation scheme, the defendants received approximately $1.3 million in subscription fees from more than 300 members located in the United States and other countries,” the statement said.
Jousef and FuturesFX have also been charged by the United States regulator with making false or misleading statements to the National Futures Association (NFA) when submitting annual CTA registration updates concerning FuturesFX’s predecessor company.
In particular, the CFTC complaint states that between at least the 1st of July 2014 until around the end of January 2016, the defendants promoted and sold access to the trading system, which they did so fraudulently.
CFTC: Jousef and FuturesFX mislead consumers
Some of the tactics they used, according to the regulator, was making false or misleading statements and ommissions on the company’s websites and in email advertisements. This includes claims that Jousef was trading forex and commodity futures in a live trading room, when in fact, he never actually traded and only made hypothetical or simulated trades.
The defendants also allegedly claimed that Jousef’s traders were profitable, however, as he never made any trades, this is false. In addition, false and misleading statements were made about Jousef’s experience with trading, including that Jousef was registered with the CFTC as a commodity trading advisor (CTA) when, in fact, he was not.
The watchdog is seeking a number of measures against Jousef and his business FuturesFX. These are the return of ill-gotten gains, restitution to defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws, the statement said.