PLEASANT GROVE, UTAH – The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Tallinexa, a company based in Tallinn, Estonia, and General Trader Fulfillment (GTF), a Nevada company operating in Pleasant Grove, Utah. The lawsuit, filed in the U.S. District Court for the District of Utah, alleges that Tallinexa operated as an unregistered Retail Foreign Exchange Dealer (RFED) and fraudulently solicited U.S. residents to trade leveraged foreign currencies.
The CFTC’s complaint accuses Tallinexa of fraudulently soliciting at least $1.5 million from U.S. customers between September 2012 and September 2016. GTF is charged with acting as an unregistered Introducing Broker (IB), soliciting customers to open accounts with Tallinexa.
According to the complaint, Tallinexa allegedly made false claims to customers, including falsely representing that it was lawfully operating in the United States. The company also reportedly misrepresented the potential profits and risks associated with forex trading, and falsely assured customers their funds were safe even if Tallinexa faced financial difficulties.
Tallinexa operated an introducing broker program, rewarding companies like GTF with commissions for bringing in new trading accounts. The CFTC is seeking restitution for defrauded customers, disgorgement of ill-gotten gains, a civil monetary penalty, permanent registration and trading bans, and a permanent injunction against further violations of federal commodities laws.
The case is being handled by CFTC staff members Camille M. Arnold, Melissa Cavers, Joy McCormack, David Terrell, Scott Williamson, and Rosemary Hollinger. The CFTC encourages anyone with information about potential fraud to contact them via their toll-free hotline at 866-FON-CFTC or submit a tip online.
Source: CFTC.gov
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