Washington D.C. – The Commodity Futures Trading Commission (CFTC) has filed charges against 20 entities accused of falsely claiming registration with the CFTC and the National Futures Association (NFA). The complaints, filed September 1, 2020, allege the companies misled potential customers by representing they held the required credentials to offer services involving foreign exchange (forex), digital assets, and derivatives trading.
The CFTC seeks cease and desist orders against each entity, effectively halting their alleged unlawful activity. According to the agency, the firms falsely asserted CFTC and NFA membership to attract investors, a practice considered a serious breach of regulatory trust.
“Today’s actions are the latest examples of the CFTC’s efforts to aggressively root out fraud and bad actors involved in our markets,” stated James McDonald, Director of the Division of Enforcement. He emphasized the CFTC’s commitment to “act decisively to prevent false claims of CFTC or NFA registration.”
The complaints detail three distinct methods of deception. Fifteen entities are accused of outright falsely claiming CFTC and NFA registration. Three others allegedly made false claims of NFA registration or licensure. Finally, two entities are charged with using the names or NFA IDs of legitimately registered members to create a false impression of their own credentials.
The CFTC is urging the public to independently verify a company’s registration status before investing. The agency provides resources, including the NFA BASIC system and information on its website (cftc.gov/check), to help customers confirm a firm’s credentials. Unregistered entities should be viewed with extreme caution, the CFTC warns.
The case was led by CFTC Division of Enforcement staff members Christopher Giglio, Elizabeth C. Brennan, David W. Oakland, Lara Turcik, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan. While the names of the 20 entities have not been publicly released in the initial announcement, the CFTC indicated further details would be made available as the case progresses.
Source: CFTC.gov
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