CFTC goes after operator of fraudulent Forex scheme GNTFX

Maria Nikolova

Since at least 2015, Casper Mikkelsen engaged in a fraudulent scheme to solicit money from at least 101 individuals and entities who invested their funds with GNTFX.

The United States Commodity Futures Trading Commission (CFTC) has launched an action against Casper Mikkelsen, a/k/a “Carsten Nielsen” a/k/a “Brian Thomson” a/k/a “Thomas Jensen” a/k/a “Casper Muller”, the individual behind fraudulent FX scheme GNTFX.

The complaint, filed today with the New York Southern District Court and seen by FinanceFeeds, alleges that, since at least 2015 and continuing to the present, Mikkelsen engaged in a fraudulent scheme to solicit and misappropriate money from at least 101 individuals and entities who invested their funds with GNTFX to trade retail leveraged or margined Forex.

Mikkelsen promised clients he would use his discretion to trade forex on their behalf and clients in turn invested at least $1.5 million. Rather than using those funds for forex trading as promised, Mikkelsen instead misappropriated at least some clients’ funds.

Mikkelsen, who was not registered with the Commission in any capacity, made material misrepresentations and omissions to clients, including, for instance, that clients’ account statements accurately reflected profits and losses of forex trades executed on their behalf. Furthermore, in order to induce clients to invest in this scheme, Mikkelsen provided clients and/or gave them access to his historical trading performance results that reported fictitious profits.

The defendant is alleged to have misappropriated at least $737,000 of client funds for his personal use. In sum, clients lost a total of at least $1.19 million and the remainder of client funds was used for purposes other than trading forex including, in part, being returned to some clients as is typical in a Ponzi scheme.

In order to conceal the misappropriation of client funds and continue to perpetuate this scheme, Mikkelsen was responsible for generating fake account trading statements for clients showing fictitious forex trades and profits. Mikkelsen then provided clients access to these fake account statements.

The CFTC charges Casper Mikkelsen with violations of Section 4b(a)(2)(A), (B), and (C) of the Commodity Exchange Act (“Act”), 7 U.S.C. § 6b(a)(2)(A), (B), (C) (2018), and Commission Regulation (“Regulation”) 5.2(b), 17 C.F.R. § 5.2(b) (2019) (“ Forex Fraud Violations”). Casper Mikkelsen is also alleged to have violated Section 4m(1) of the Act, 7 U.S.C § 6m(1) (2018), and Regulation 5.3(a)(3), 17 C.F.R. § 5.3(a)(3) (2019) (“CTA Registration Violations”), and Section 4o(1)(A) and (B) of the Act, 7 U.S.C. § 6o(1)(A), (B) (2018) (“CTA Fraud Violation”).

In this action, the CFTC seeks civil monetary penalties, and remedial ancillary relief, including, but not limited to, trading and registration bans, restitution, disgorgement, rescission, pre- and post-judgment interest, and such other and further relief as the Court may deem appropriate.

Read this next

Industry News

Research market in dire straits as SEC’s ‘no-action’ letter on MiFID II lapses in June – survey

“Of all the regulatory news that has hit the research market in the last few months, this is the one change that will fundamentally impact what fund managers can access and pay for in future.”

Executive Moves

Wombat appoints ex-abrdn Richard Charnock as UK platform turns to Europe

Launched in 2019, Wombat provides a dedicated mobile investing platform – available on both iOS and Android – offering users both range and choice.

Institutional FX

Broadridge integrates Point Focal’s pre and post-market reports

“Point Focal provides a unique lens on the market which will help add alpha to the trading process and these new insights will rapidly improve performance while mitigating execution risk and simplify trading.”

Technology

XCritical integrates with Brokeree Solutions, allowing its clients to launch copy trading 

The forex software provider – XCritical, has integrated Social Trading by Brokeree Solutions into their CRM system.

Industry News

HKEX partners with Saudi exchange for cross listings, ESG, Fintech

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world. Hong Kong and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Mainland Chinese markets through our unique Connect programmes. This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation.”

Executive Moves

CMC Markets Connect relocates APAC team led by Peter Foster to Singapore

“Singapore is a vibrant city and is now undoubtedly seen as Asia’s leading financial hub. The decision to bolster the CMC Markets Connect team here will help us cement the company’s position as a leading provider of multi asset liquidity and comprehensive trading solutions across the region.”

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

<