New York, NY – The Commodity Futures Trading Commission (CFTC) has filed fraud and supervisory failure charges against TFS-ICAP LLC and TFS-ICAP Ltd. (collectively, TFS-ICAP), along with its Chief Executive Officer, Ian Dibb, and Head of Emerging Markets broking, Jeremy Woolfenden. The complaint, filed in the U.S. District Court for the Southern District of New York, details a scheme spanning from approximately 2008 to 2015.
The CFTC alleges that TFS-ICAP brokers in the U.S. and the U.K. routinely deceived clients in the foreign exchange options market by communicating false bids, offers, and trades. These practices, known as “flying prices” and “printing trades,” were allegedly integral to the company’s business model. Brokers reportedly conveyed these fictitious figures via phone, instant message, and TFS-ICAP’s electronic trading platform, Volbroker.
According to the complaint, the purpose of this deception was to create the illusion of greater liquidity on TFS-ICAP’s platform, prompting clients to trade at unfavorable times and prices. When clients attempted to act on these fake quotes, brokers allegedly fabricated excuses when legitimate counterparties couldn’t be found.
The CFTC claims senior management at TFS-ICAP either actively encouraged or knowingly allowed these fraudulent practices to continue. Woolfenden is accused of explicitly encouraging brokers to “fly prices” and “print trades,” while Dibb allegedly had knowledge of the scheme and failed to take corrective action. In one instance, brokers in the New York office falsely attributed trades to a registered swap dealer (Bank A) without their consent, a practice Woolfenden was aware of and did not address. The complaint further alleges Dibb and others attempted to conceal the fake trades as legitimate, fearing potential whistleblowers.
James McDonald, CFTC Director of Enforcement, stated the agency is “committed to policing the integrity of our markets” and will “hold accountable not just the company, but also the individuals responsible.”
The CFTC is seeking disgorgement of ill-gotten gains and other penalties in its ongoing civil litigation. The specific amount of the alleged benefits to be disgorged has not yet been determined.
Source: CFTC.gov
Related Federal Cases
- Christopher Ferguson, Scheme to Inflate Order Numbers, New York NY,… · Washington
- John Smith Pleads Guilty to $1B Embezzlement Scheme, New York NY, 2023 · Alabama
- OneMain Financial, Debt Trap Scheme, New York NY, 2023 · Pennsylvania
- GoFundMe, Charity Scam Scheme, New York NY, 2023 · Virginia
- John F. Rivers, Car Theft Scheme, New York, 2023 · Florida
