WASHINGTON DC – The U.S. Commodity Futures Trading Commission (CFTC) secured a federal court order against Enfinium Pty Ltd, an Australian firm, for illegally soliciting and accepting foreign currency (forex) orders from U.S. customers without proper registration. The consent order was entered on February 24, 2012, by Judge Harry D. Leinenweber of the U.S. District Court for the Northern District of Illinois.
The order mandates Enfinium to pay an $80,000 civil penalty. Additionally, the company is prohibited from soliciting or accepting orders from U.S. customers who do not qualify as Eligible Contract Participants (ECPs) and is barred from acting as a counterparty to their forex transactions until it registers with the CFTC. Enfinium is also required to prominently display a notice on its website stating it does not provide services to U.S. customers.
The CFTC’s charges stem from Enfinium’s unlawful solicitation of U.S. customers for forex transactions and operation as a Retail Foreign Exchange Dealer without the required CFTC registration. The investigation revealed that from October 18, 2010 – the date new regulations took effect under the Dodd-Frank Act and the 2008 Farm Bill requiring registration – through at least September 7, 2011, Enfinium continued to solicit and accept orders from non-ECP U.S. customers.
According to the order, Enfinium utilized a website operated by its authorized representative, Vantage FX Pty Ltd, to solicit U.S. customers and offered to act as a counterparty to all customer contracts. While Enfinium ceased accepting new U.S. customers after October 18, 2010, it continued to process orders from existing U.S. accounts until at least September 7, 2011.
The CFTC’s Division of Enforcement team included David Terrell, Elizabeth M. Streit, Joy McCormack, Scott R. Williamson, Rosemary Hollinger, and Richard Wagner. The agency urges the public to verify a company’s registration status with the National Futures Association before investing, accessible at http://www.nfa.futures.org/basicnet. Investors are also encouraged to review the CFTC’s forex consumer protection advisories, available on the CFTC website.
Source: CFTC.gov
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