BOCA RATON, FL – Barry Sendach and Joshua Kershner of Boca Raton and Boynton Beach, Florida, respectively, have been charged with forex fraud and violating CFTC registration requirements, the U.S. Commodity Futures Trading Commission (CFTC) announced on April 9, 2013. The charges stem from their operation of Forex Global Solutions Inc. and Forex Global Solutions Ltd., which fraudulently solicited customers for off-exchange forex trading.
According to the CFTC, from October 18, 2010, Forex Global and its principals, Sendach and Kershner, misrepresented historical performance returns on their website and in email solicitations. They allegedly failed to disclose that these returns were calculated inaccurately, omitting one of three fees charged to customers. This misleading information was used to entice investors to open accounts and grant discretionary trading authority to Forex Global.
The CFTC also found that Forex Global, Sendach, and Kershner failed to register with the agency as required under new forex regulations effective since October 18, 2010. These regulations mandate that entities exercising discretionary trading authority register as Commodity Trading Advisors (CTAs), and those soliciting or accepting trades register as Introducing Brokers (IBs). Associated Persons (APs) of these entities must also be registered. Forex Global operated as a CTA and IB without proper registration, and Sendach and Kershner acted as APs without registering themselves.
As a result of the CFTC’s action, Forex Global, Sendach, and Kershner were jointly and severally ordered to pay a $750,000 civil monetary penalty. They were also permanently banned from engaging in trading and registration activities with the CFTC. The case was led by CFTC staff members Stephanie Reinhart, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
The CFTC urges the public to verify the registration status of any firm before investing, utilizing resources available through the National Futures Association (NFA) and the CFTC’s Education Center. Investors are also advised to review customer protection advisories related to foreign currency trading fraud on the CFTC’s website.
Source: CFTC.gov
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