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Screenshot of a breaking news alert e-mail from Q2 2017
The U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement Complaint charging Defendants IB Capital FX, LLC (a/k/a IB Capital FX [NZ] LLP) d/b/a IB Capital (IB Capital), Michel Geurkink, and Emad Echadi, individually and as the agents of IB Capital, with soliciting and accepting at least $50 million from at least 960 clients worldwide, including at least 697 clients in the United States, for off-exchange margined forex trading, without being registered with the CFTC, as required.
It looks as if the Defendents in this case were looking to capitalize off of the name recognition of a well established broker at the time IBFX, however there is no relation of course.
The CFTC Complaint alleges that, from at least January 1, 2012 through September 18, 2012, the Defendants engaged in the offering of agreements, contracts or transactions in forex to retail customers who were not eligible contract participants without being registered as required by the relevant provisions in the Commodity Exchange Act (CEA) and the CFTC’s Regulations.
In fact, the Defendants have never been registered as required with the CFTC, according to the Complaint. Courts have long recognized that the operation of an unregistered entity is a serious violation of the CEA and CFTC Regulations and is a threat to the integrity of the industry.
The CFTC Complaint seeks restitution, rescission, disgorgement, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the registration provisions of the CEA and CFTC Regulations.
The CFTC appreciates the assistance of the Australian Securities & Investments Commission, United Kingdom Financial Conduct Authority, Hungarian Financial Supervisory Authority (which merged with the Central Bank of Hungary [Magyar Nemzeti Bank]), Financial Markets Authority of New Zealand, and the New Zealand Serious Fraud Office.
For the official release click here.