Forex Fraud Watch: CFTC charges NY man with fraud for violating his consent order not to trade FX

Alex Vladimir Ekdeshman, Edward J. Servider, of Staten Island, N.Y., and their company, EJS Capital Management LLC, raised more than $2 million from at least 90 customers who wanted to invest in off-exchange foreign currency. Instead of making trades, they used the money for expenses such as vacations to Italy and automobile leases, according to a complaint filed by the U.S. Commodity Futures Trading Commission.

The complaint, filed May 1, came eight months after Ekdeshman and his company, Paramount Management LLC, agreed to pay $2.5 million and to be banned from trading to settle a previous complaint, the CFTC said.

Ekdeshman’s New York-based lawyer, Ronald Fischetti, said Monday he had yet to go through the details of the new complaint, but Ekdeshman maintained his innocence.

EJS Capital Management on its website said it made a gross return of 21.86 percent in 2011; 30.47 percent in 2012; and 76.71 percent in 2013, authorities said. But the company didn’t form a Nevada corporation until Jan. 30, 2013; it wasn’t registered with the CFTC as required by law; and it didn’t manage or trade any customer accounts, according to the complaint.

Instead, the complaint said, Ekdeshman and Servider misappropriated at least $1.1 million for business expenses such as rent, supplies, parking and employee salaries. They spent more than $348,000 on personal expenses such as entertainment, clothing and liquor purchases. And they transferred money to others, including Ekdeshman’s wife, Alisa.

The CFTC said Ekdeshman violated his consent order and charged him with fraud. It is seeking restitution for EJS’ customers and penalties.

Source: Asbury Park Press

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