CFTC opposes attempt by alleged Forex fraudster to stay action against him

Maria Nikolova

The US regulator argues that Brett Hartshorn’s motion to stay the civil proceedings against him is simply a delay tactic.

Brett Hartshorn, whom the Commodity Futures Trading Commission (CFTC) accused of having fraudulently solicited at least $906,000 for purposes of Forex trading, has faced opposition to his attempt to halt the civil proceedings against him.

On April 11, 2019, the CFTC filed a Letter with the New York Southern District Court, arguing that a motion by the defendant for an indefinite stay of the action has to be nixed.

Hartshorn sent the following email on April 2, 2019:

I have received a Grand Jury Target Letter from the middle district of Florida U.S. Attorneys Office.

I respectfully request a “Stay” of civil proceedings and a “Stay” of the requirement to “Respond” in the civil case brought against me, due by 4/15/19.

The reason for my request is that I am considering invoking my fifth amendment right in the civil case, so that I do not prejudice the criminal case.

I respectfully request a “Stay” until the criminal case is resolved. Thank you very much for your time and consideration”.

In response to this request, the CFTC says it opposes any stay in this case, much less the open-ended and indefinite stay requested by Hartshorn. The defendant does not claim that he has been charged criminally; thus, there is presently no “criminal case” against him, the regulator notes. In addition, counsel for the CFTC has been informed that the defendant received the target letter on November 2, 2018. Since receiving the target letter more than five months ago, Hartshorn has participated in the civil case, including by: filing a request that the Court vacate the Clerk’s entry of default on November 19, 2018; attending a phone conference with the Court and Plaintiff’s counsel on January 31, 2019; and filing an Answer on February 27, 2019.

According to the Commission, the defendant has not carried his burden of articulating why any stay is appropriate where there has been no indictment. Moreover, such a stay would be prejudicial to the CFTC and not in the public interest because it would indefinitely delay discovery in this case.

Let’s recall that the CFTC has found that from at least June 18, 2008 to in or around 2014 Hartshorn fraudulently solicited at least 13 individuals including members of his church and individuals he met in his local community, to invest in off-exchange foreign currency on a leveraged, margined, or financed basis and to give Hartshorn discretionary authority to trade forex on their behalf. Hartshorn solicited and/or managed at least $906,000 in client funds.

The defendant had challenged the CFTC action based on statute of limitations, improper venue, and lack of CFTC jurisdiction. In September 2018, Judge Andrew L. Carter denied Brett Hartshorn’s motion to dismiss in its entirety.

Read this next

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

<