WASHINGTON, D.C. – Jase Davis of Brandon, Mississippi, along with four other individuals and five companies, have been charged with fraud, misappropriation, and registration violations in connection with a $58 million foreign currency (forex) scheme, the Commodity Futures Trading Commission (CFTC) announced today.
The civil enforcement action, filed in the U.S. District Court for the Southern District of Florida, alleges that Davis, Borys Konovalenko of Ukraine, Anna Shymko of Duluth, Georgia, Alla Skala of Grand Island, New York and/or Fort Erie, Canada, and Timothy Stubbs of Brandon, Mississippi and/or Atlanta, Georgia, operated a fraudulent scheme through the companies Notus LLC d/b/a ROFX, Easy Com LLC d/b/a ROFX, Global E-Advantages LLC a/k/a Kickmagic LLC d/b/a ROFX, Grovee LLC d/b/a ROFX, and Shopostar LLC d/b/a ROFX.
From approximately January 2018 through September 2021, the defendants allegedly used the ROFX.net website to solicit funds from over 1,100 U.S. and international customers, falsely claiming to trade forex using a highly successful automated trading robot with guaranteed loss coverage. Customers deposited funds via checks or wire transfers into bank accounts controlled by the companies.
The CFTC claims the defendants misappropriated at least $58 million in customer funds, wiring the money to corporate entities in Poland, Thailand, and other locations, as well as to themselves. The companies are accused of acting as unregistered futures commission merchants, soliciting and accepting orders for retail forex transactions without being registered with the CFTC.
The CFTC is seeking restitution for defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and permanent injunctions against further violations of the Commodity Exchange Act and CFTC regulations. The agency cautions that victims may not fully recover their losses, as the defendants may lack sufficient assets.
Assistance in the investigation was provided by the Alabama Securities Commission, Mississippi Secretary of State’s Office (Securities Division), Rankin County (Mississippi) Sheriff’s Office, Oregon Division of Financial Regulation, Ontario Securities Commission, the Polish Financial Supervision Authority, the Financial Supervision Commission of Bulgaria, the Czech National Bank, the Federal Financial Supervisory Authority of Germany, the Central Bank of Hungary, and the Securities and Exchange Commission of Thailand.
Source: CFTC.gov
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