The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against five individuals and five companies accused of operating a $58 million fraudulent foreign currency (forex) scheme. The case, filed in the U.S. District Court for the Southern District of Florida, alleges fraud, misappropriation, and registration violations.
Named in the complaint are Jase Davis of Brandon, Mississippi; Borys Konovalenko of Ukraine; Anna Shymko of Duluth, Georgia; Alla Skala of Grand Island, New York and/or Fort Erie, Canada; Timothy Stubbs of Brandon, Mississippi and/or Atlanta, Georgia; 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. All companies are limited liability companies registered in either Colorado, New Hampshire, or Delaware.
According to the CFTC, between January 2018 and September 2021, the defendants, operating as a common enterprise under the control of the individual defendants, used the website ROFX.net to solicit funds from over 1,100 customers under false pretenses. They allegedly claimed to utilize a highly successful automated trading robot with guaranteed loss coverage, attracting investors with promises of profitable forex trading.
The agency alleges that at least $58 million in customer funds were misappropriated. These funds were reportedly wired to corporate entities in Poland, Thailand, and other locations, as well as directly to the individual defendants. Furthermore, the complaint states the companies operated as unregistered futures commission merchants, accepting funds for retail forex transactions without proper CFTC registration.
The CFTC is seeking restitution for defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading bans, and permanent injunctions to prevent further violations of the Commodity Exchange Act and CFTC regulations. The agency cautions that restitution orders do not guarantee full recovery of lost funds, as defendants may lack sufficient assets.
The investigation received assistance from several agencies, including the Alabama Securities Commission, Mississippi Secretary of State’s Office, Rankin County (Mississippi) Sheriff’s Office, Oregon Division of Financial Regulation, Ontario Securities Commission, and financial regulatory bodies in Poland, Bulgaria, Czech Republic, Germany, Hungary, and Thailand.
Source: CFTC.gov
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