LeapRate FX Fraud Watch – $57 million (!!) fine to Mexico broker MBFX

CFTC fines MXBK Group and its MBFX subsidiary for defrauding U.S. Forex customers.

The CFTC has handed out one of its largest ever fines — a $57 million whopper — to Mexico-based MXBK Group and its FX brokerage subsidiary MBFX.

The order found that MXBK and MBFX accepted at least $28 million from more than 800 U.S. customers to trade Forex in pooled accounts. MXBK and MBFX defrauded their customers, in part, by misrepresenting their historical trading results. Specifically, from June 2008 through April 2009 MXBK and MBFX reported overall trading profits when, in fact, they lost approximately $19.4 million.

For the full CFTC press release click here.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

Related News


LeapRate FX Fraud Watch – $57 million (!!) fine to Mexico broker MBFX


Send this to a friend

Subscribe to LeapRate
Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry: