CFTC said MBFX Group has never been registered in any capacity with it.
The CFTC’s complaint alleges that, from at least 2005 to the present, the defendants accepted at least $28m from more than 800 US customers for the purpose of trading forex on behalf of customers in pooled accounts.
The complaint further alleges that, from June 2008 through April 2009, the defendants reported trading profits when, in fact, they lost approximately $19.4m.
The defendants allegedly reported trading profits in at least eight separate months, when they actually incurred substantial trading losses, often exceeding $1m per month.
In its continuing litigation, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties, an accounting of defendants’ assets and liabilities, permanent trading and registration bans and permanent injunctions against further violations of the federal commodities laws.
The CFTC’s action arose from a joint CFTC cooperative enforcement investigation with the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC).
On 30 November 2010, the SEC filed a complementary action in the US District Court for the District of Utah, entitled SEC v. Oram, which alleges violations of US securities laws by three US residents alleged to be involved in the MXBK and MBFX enterprise.
