WorldWideMarkets, Ltd., TAB Networks, Inc., and its executives, Thomas Plaut and Arthur Dembro, are facing charges of fraud and related violations, according to a complaint filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the District of New Jersey. The civil enforcement action alleges a long-running scheme to defraud retail forex customers worldwide between March 2012 and September 2018.
The CFTC alleges that WorldWideMarkets and TAB Networks operated as a common enterprise under the control of Thomas Plaut, from an office in Woodcliff Lake, New Jersey. Arthur Dembro, serving as Chief Financial Officer for both companies, is accused of aiding and abetting the fraudulent activity. The companies reportedly ignored CFTC registration requirements and customer protection rules before ultimately becoming insolvent.
According to the complaint, WorldWideMarkets systematically misappropriated at least $4.7 million in customer funds, utilizing the money to cover operating expenses, employee compensation, and cash distributions to Plaut. The companies were organized in the British Virgin Islands, the CFTC alleges, specifically to evade U.S. registration and customer protection regulations applicable to retail forex dealers.
The CFTC complaint further states that WorldWideMarkets failed to maintain sufficient adjusted net capital, did not hold customer assets in a designated financial institution, and falsely claimed to hold customer funds in segregated accounts. Acting Director of Enforcement Vincent McGonagle emphasized the importance of registration requirements and customer protection regulations, stating the company’s insolvency was a predictable outcome of its Ponzi-like operation.
The CFTC worked in conjunction with the U.S. Securities and Exchange Commission, the British Virgin Islands Financial Services Commission, and the Mauritius Financial Services Commission during the investigation. Joseph Platt, Joseph Patrick, Joseph Konizeski, Scott Williamson, Robert Howell, Camille Arnold, and Lindsey Evans comprised the Division of Enforcement staff responsible for the case.
The CFTC urges customers to be aware of the warning signs of fraud, particularly in foreign currency trading, and provides resources to report suspicious activity via a toll-free hotline: 866-FON-CFT.
Source: CFTC.gov
Related Federal Cases
- Alin Carabus, ATM Skimming Scheme, New Jersey 2024 · Pennsylvania
- Habib Chaudhry, Credit Card Scheme, New Jersey 2013 · Pennsylvania
- Babar Qureshi, Credit Card Scheme, New Jersey 2024 · Pennsylvania
- Irina Segal, Medicare Scheme, Philadelphia PA, 2023 · Pennsylvania
- Marc Henry Menard, Investment Fraud Scheme, Mineola NY, 2023 · Pennsylvania
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News