POMONA, CA – January 18, 2013 – Scott Geisinger, of Pomona, California, has been slapped with a hefty penalty and trading ban for failing to register with the Commodity Futures Trading Commission (CFTC) while conducting foreign currency (forex) transactions, the CFTC announced today.
Judge Percy Anderson of the U.S. District Court for the Central District of California entered a default judgment on January 10, 2013, against Geisinger and his firm, Lincolnshire Trading Partners, LLC. Both Geisinger and Lincolnshire were ordered to pay a $140,000 civil monetary penalty. The order also permanently bans them from trading and registering with the CFTC, and prohibits any further violations of the Commodity Exchange Act (CEA) and related regulations.
The CFTC initially filed a complaint on August 29, 2012, alleging that Lincolnshire, through Geisinger, exercised discretionary trading authority over forex accounts for clients who were not eligible contract participants. This activity occurred between at least October 18, 2010, and the present. Crucially, Lincolnshire and Geisinger were not registered with the CFTC and did not qualify for any exemption from registration requirements.
According to the court’s findings, Geisinger solicited clients to open discretionary accounts for leveraged forex trading and supervised those involved without being a registered Associated Person with the CFTC. These actions violated specific sections of the CEA and CFTC regulations pertaining to registration requirements for individuals involved in forex trading.
The CFTC acknowledged the assistance of the U.S. Attorney’s office for the Central District of California and the UK Financial Services Authority in the investigation. The case is U.S. Commodity Futures Trading Commission v. Lincolnshire Trading Partners, LLC, et al, Civil Action No. 12-7417 PA (VBKx).
Jason Mahoney, Timothy J. Mulreany, George Malas, Paul Hayeck, and Joan Manley of the CFTC’s Division of Enforcement were responsible for the case.
Source: CFTC.gov
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