The Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the Southern District of New York entered a consent order for a permanent injunction against Eyal Alper who has been charged for committing a fraudulent foreign exchange (forex) scheme.
In particular, Alper, of Irvington, New York, is required to pay restitution totalling $352,901 as part of the order, as well as a civil monetary penalty of the same amount. Furthermore, the order places permanent trading and registration bans on Alper.
CFTC charged Alper with fraud
The order, which also prohibits him from violating provisions of the Commodity Exchange Act and Commission regulations, as charged, follows on from the commodities regulator filing a complaint against Alper on the 24th of October 2019.
In particular, the regulator charged him with fraud, misappropriation, and engaging in prohibited activities as a commodity trading advisor.
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“The order finds that beginning in late 2015 and lasting until October of 2019, Alper fraudulently solicited members of the public to trade futures and foreign currency (forex) contracts through managed accounts,” the statement released by the CFTC on Tuesday said.
As part of the scam, Alper made material misrepresentations and omission, the regulator said. This included statements that he was an experienced and successful trader who controlled a large dollar trading account at a UK-based trading firm.
Instead of opening trading accounts for his victims, as was promised, Alper used the money for his own personal expenses, the CFTC said, such as international travel, restaurant bills, and car rentals.
“The CFTC cautions that orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure that wrongdoers are held accountable,” the regulator said.