Eddy Alexandre of Valley Stream, New York, and his company, EminiFX, Inc., are facing charges of fraudulent solicitation and misappropriation of funds, according to a civil enforcement action filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Southern District of New York. The complaint alleges a scheme involving forex, commodity futures, and cryptocurrencies.
On May 11, 2022, Judge Valerie E. Caproni issued a statutory restraining order, freezing assets and appointing a Temporary Receiver to preserve records. A hearing on the CFTC’s motion for a preliminary injunction is scheduled for May 24, 2022.
The CFTC is seeking restitution for defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, and permanent bans from trading and registration. They also request a permanent injunction against further violations of the Commodity Exchange Act (CEA).
According to the complaint, from at least September 2021, Alexandre and EminiFX solicited at least $59 million from hundreds of individuals, promising guaranteed weekly returns of 5% through an investment club. However, only approximately $9 million of the collected funds were actually used for trading forex and cryptocurrency in an account under Alexandre’s name. Of that $9 million, roughly $6.2 million – nearly 70% – was lost through unsuccessful trading and associated fees.
The CFTC alleges that Alexandre misappropriated the remaining funds, transferring money to accounts in his name, using it to pay earlier investors in a Ponzi-like manner, and covering personal expenses. Records show Alexandre used participant funds for purchases at BMW, Mercedes Benz, and Saks Fifth Avenue, as well as for flights, luxury hotels, clothing, and medical treatments. He also allegedly used the funds to rent office space for EminiFX and to host promotional “galas” used to attract further investment.
A parallel criminal investigation has also been launched by the U.S. Attorney’s Office for the Southern District of New York, announced on May 12, 2022. The CFTC’s Division of Enforcement acknowledged the assistance of the U.S. Attorney’s Office and the Federal Bureau of Investigation in the case.
Source: CFTC.gov
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