A U.S. District Court in the Southern District of New York has entered a consent order against Simon Jousef, of Ontario, Canada, and his firm, FuturesFX, resolving charges of forex fraud brought by the Commodity Futures Trading Commission (CFTC).
The order, finalized on April 23, 2020, mandates Jousef and FuturesFX to pay a combined $1.7 million in restitution and penalties. This includes $1.3 million in restitution to over 300 defrauded members located in the United States and internationally, and a $450,000 civil monetary penalty.
The CFTC initially filed its complaint on September 10, 2019, alleging that Jousef and FuturesFX fraudulently solicited subscriptions to a trading system advertised as providing access to a “live” foreign exchange (forex) and commodity futures online trading room, along with educational resources and support. The agency claimed the defendants made false and misleading statements on their website, within the trading room itself, and in email marketing materials from at least July 1, 2014, through January 31, 2016.
According to the consent order, these misrepresentations were intended to induce individuals into purchasing subscriptions to the system, which purported to offer a methodology for successful trading in forex and commodity futures contracts. The CFTC also found that Jousef knowingly provided false or misleading information to the National Futures Association (NFA) during annual registration updates for FuturesFX’s predecessor company.
The order permanently bans Jousef and FuturesFX from engaging in future violations of the Commodity Exchange Act and CFTC regulations, including trading and registration restrictions. The CFTC acknowledged the cooperation of the Ontario Securities Commission and the NFA in the investigation.
Individuals who suspect fraud are encouraged to report it to the CFTC via the toll-free hotline at 866-FON-CFTC or submit a tip online.
Source: CFTC.gov
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