The U.S. Commodity Futures Trading Commission (CFTC) filed suit last week against 14 foreign currency exchange (Forex) dealers, according to a Jan. 26, 2011 CNNMoney article by Charles Riley, “Regulator sues foreign currency dealers.” The suit charges that the firms unlawfully solicited members of the public to engage in foreign currency transactions, operated without being registered with the CFTC, and engaged in illegal currency trading. The CFTC seeks civil monetary penalties, as well as trading and registration bans, according to the article.
The filings are based on new provisions of the Dodd-Frank Wall Street reform bill and the 2008 Farm Bill that went into effect in October. The actions are pending in U.S. District Courts in Chicago, the District of Columbia, Kansas City and New York.
According to the article, the Forex firms named in the suit are:
EuroForex Development LLC (Delaware)
FIG Solutions Limited, Inc. (Delaware)
ForInvest (Delaware)
FXOpen Investments Inc. (Delaware)
FXPRICE (Delaware)
GIGFX, L.L.C. (Delaware)
InovaTrade, Inc., a company with purported offices in Florida
InstaTrade Corporation or InstaForex (British Virgin Islands)
InvesttechFX Technologies, Inc. (Canada)
J&K Futures, Inc., a company with purported offices in California and New York
Kingdom Forex Trading and Futures, Ltd. (Nevada)
Prime Forex, LLC (Delaware)
Wall Street Brokers, LLC (Delaware)
ZtradeFX LLC (Connecticut).
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing institutional and individual investors in investment-related litigation and arbitration all over the country. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 40 occasions.