PLEASANT GROVE, UTAH – A Utah-based company and its Estonian partner have been slapped with hefty fines and permanent trading bans following a Commodity Futures Trading Commission (CFTC) investigation into fraudulent forex practices. Judge David Nuffer of the U.S. District Court for the District of Utah issued orders against Tallinex, an Estonian company operating out of St. Vincent and the Grenadines, and General Trader Fulfillment (GTF), a Nevada company based in Pleasant Grove, Utah.
Tallinex was found to have operated as an unregistered foreign exchange dealer, soliciting U.S. customers for leveraged forex transactions without proper registration with the CFTC. The court determined Tallinex defrauded customers through false representations, including claims of lawful operation within the U.S. and assurances of segregated, protected funds. The company also allegedly failed to disclose risks while simultaneously promoting unrealistically high profit potential – ranging from 162.29% to 1301.10% – to attract new accounts.
As a result of the default judgment entered on July 9, 2018, Tallinex is required to pay $10,289,391 in restitution to defrauded U.S. customers and a $681,888 civil penalty. The order permanently prohibits the company from violating the Commodity Exchange Act.
GTF, which provided forex trading instruction, was found to have acted as an unregistered introducing broker. The company allegedly paid “coaches” who, in turn, introduced U.S. customers to Tallinex, facilitating off-exchange retail forex transactions. A consent order issued June 26, 2018, requires GTF to pay an $85,000 civil monetary penalty and permanently bars it from violating the Commodity Exchange Act.
The CFTC initiated the case with a complaint filed on May 30, 2017. While the agency pursues restitution, it cautions victims that full recovery of lost funds is not guaranteed due to potential limitations in the defendants’ assets. The CFTC also acknowledged the assistance of financial authorities in Estonia, St. Vincent and the Grenadines, Bulgaria, and the Czech Republic in the investigation.
Source: CFTC.gov
Related Federal Cases
- Bradford Leland Fishback, COVID-Relief Scam, Utah 2024 · Washington
- Leland Fishback, COVID-Relief Fraud, Utah 2024 · Washington
- Oluwole Adegboruwa, Oxycodone Trafficking, Utah 2019 · Washington
- Patel Gets Three-Year Sentence for Money Laundering Scheme · Utah
- Live Nation, Antitrust Lawsuit, New York NY, 2024 · New Mexico
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News