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.