New York, NY – December 5, 2012 – U.S. District Court Judge Katherine B. Forrest entered a default judgment against Forex Capital Trading Group, Inc., Forex Capital Trading Partners, Inc., and Highland Stone Capital Management, L.L.C., stemming from a Commodity Futures Trading Commission (CFTC) anti-fraud enforcement action. While the judgment primarily targets the companies, the CFTC’s litigation continues against key individuals involved.
The court order mandates the companies collectively pay a $1,352,293 civil penalty and disgorge $450,764 in ill-gotten gains, to be distributed to defrauded customers. A permanent injunction also bars the defendants from future violations of the Commodity Exchange Act and CFTC regulations, including permanent trading and registration bans.
The CFTC initially filed the action on July 27, 2011, alleging that the three companies fraudulently solicited over 106 customers to invest more than $2.8 million in retail foreign currency (forex) trading. The companies falsely claimed sustained profitability on their websites and promotional materials, including a reported 51.94% customer gain in 2010 – a year in which customers actually lost over $1.2 million.
The court found that customers ultimately lost more than 93% of their initial investments through the defendants’ forex trading activities. Furthermore, the companies distributed falsified account statements showcasing profitable trades and operated as unregistered entities with the CFTC.
The ongoing litigation focuses on the principals of Forex Partners and Forex Group, Susan G. Davis of Jersey City, New Jersey, and David E. Howard II of New York, NY, as well as Joseph Burgos, principal of Highland Stone, from Rutherford, New Jersey. The CFTC acknowledged assistance received from the U.K. Financial Services Authority in the investigation.
Source: CFTC.gov
Related Federal Cases
- Letitia James, Social Security Benefits Fraud, New York 2023 · Washington
- Letitia James, Securities Fraud, New York 2023 · Washington
- Ijaz Butt Sentenced to 63 Months for Credit Card Fraud, New York NY… · Pennsylvania
- Letitia James Blocks Trumps Illegal Funding Freeze, New York NY, 2024 · Washington
- Letitia James Seeks $166B Tariff Refund, New York, 2023 · Pennsylvania
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News