The derivatives regulator alleges the defendants made misleading statements in email ads and in an online trading room
U.S. derivatives regulators have charged a Canadian firm and its proprietor with fraudulently pitching its online trading and teaching system to U.S. investors.
The U.S. Commodity Futures Trading Commission (CFTC) charged Ontario-based FuturesFX and Simon Jousef for allegedly soliciting investors in the U.S. and elsewhere to access its online trading system for foreign exchange (forex) and commodity futures, as well as educational videos and online support.
In a complaint filed in the U.S. District Court for the Southern District of New York, the CFTC alleges that the defendants made misleading statements to prospective investors in email ads and in an online trading room.
As a result of the scheme, the CFTC says, they generated approximately US$1.3 million in fees from investors in the U.S. and other countries.
Jousef was also charged for making false or misleading statements to the self-regulatory organization, the National Futures Association (NFA).
The allegations have not been proven.
The CFTC is seeking a return of ill-gotten gains, restitution to defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws.