Santa Ana, CA – Forex Liquidity LLC (FXLQ) has been slapped with a $400,000 penalty and a permanent ban from commodity trading after being found in violation of federal regulations, the Commodity Futures Trading Commission (CFTC) announced on April 23, 2012. The consent order, entered on April 19, 2012, by Judge Cormac J. Carney of the U.S. District Court for the Central District of California, effectively shuts down FXLQ’s ability to participate in the commodity markets.
The CFTC charged FXLQ with operating while undercapitalized and failing to maintain accurate books and records. According to the order, between November 30, 2007, and December 7, 2007, the company’s adjusted net capital fell below the legally required minimum. Furthermore, the court determined that from June 30, 2007, to November 30, 2007, FXLQ, acting through its agents, did not keep records that accurately displayed its financial position—assets, liabilities, and capital.
The penalty aims to address FXLQ’s systemic failures in adhering to the Commodity Exchange Act and CFTC regulations. The order not only prohibits the company from trading but also bars it from registering with the CFTC in the future. This effectively ends FXLQ’s involvement in any commodity-related activity.
The CFTC acknowledged the assistance of the National Futures Association in the investigation. The case was led by CFTC Division of Enforcement staff including Peter M. Haas, Richard P. Foelber, A. Daniel Ullman II, JonMarc P. Buffa, Paul G. Hayeck, and Joan Manley. The investigation highlights the CFTC’s ongoing efforts to ensure the integrity and stability of the U.S. commodity markets.
The original case stemmed from findings dating back to December 19, 2007 (CFTC News Release 5426-07), but the final settlement and injunction were issued this month, solidifying the CFTC’s enforcement action against the California-based firm.
Source: CFTC.gov
Related Federal Cases
- Amy Evangelista, Tax Fraud, California 2023 · Alaska
- Federal Regulators, Lifel, Securities Fraud, California 2020 · New York
- Uber Technologies, LLC and Uber USA, LLC, Subscription Service Fraud, New York 2023 · New York
- McKenzie Marie Earley, $10M Wire Fraud, C.D. California, 2023 · Alaska
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Pennsylvania
