A federal court has issued a preliminary injunction against Timothy F. Stubbs, a Certified Public Accountant from Atlanta, Georgia, in connection with a $58 million foreign currency (forex) fraud scheme. The order, entered by U.S. District Judge Darrin P. Gayles of the Southern District of Florida on September 22, stems from a complaint filed by the Commodity Futures Trading Commission (CFTC) in January 2022.
The CFTC alleges that Stubbs, along with four other individuals and five companies operating under the name ROFX, fraudulently solicited funds from U.S. and international customers between January 2018 and September 2021. The scheme involved the misappropriation of at least $58 million under the guise of forex trading.
Judge Gayles found the CFTC presented a “reasonable likelihood” that Stubbs would continue to violate the Commodity Exchange Act (CEA). The court also noted Stubbs’ professional accounting background, suggesting he either knowingly participated in the fraud or deliberately ignored red flags to avoid accountability. “As Stubbs is a CPA, it is reasonable to conclude that he either knew about the Fraudulent Enterprise or stuck his head in the sand to manufacture plausible deniability,” the order stated.
The injunction prohibits Stubbs from engaging in further fraudulent activity, freezes his assets, and mandates the preservation of financial records. He is also required to provide the CFTC with immediate access to his books and records and to return funds misappropriated from customers.
Also named in the CFTC’s complaint are Jase Davis of Brandon, Mississippi; Borys Konovalenko of Ukraine; Anna Shymko of Duluth, Georgia; Alla Skala of Grand Island, New York and/or Fort Erie, Canada; and the companies Notus LLC, Easy Com LLC, Global E-Advantages LLC, Grovee LLC, and Shopostar LLC – all operating under the ROFX banner.
The CFTC is seeking restitution for defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, and permanent trading bans against all defendants. The agency cautions that victims may not fully recover their losses, as the defendants may lack sufficient assets. The case is being prosecuted by the CFTC’s Division of Enforcement, led by Danielle Karst, Timothy J. Mulreany, George H. Malas, Kelly Makimoto-Murphy, and Paul G. Hayeck.
The CFTC advises potential investors to be wary of forex scams and provides resources on identifying fraud indicators on its website.
Source: CFTC.gov
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