CFTC secures entry of default against Madison Forex International employee Christopher Peck
Mr Peck is targeted by the US regulator in adversary proceedings in a bankruptcy case.
The United States Commodity Futures Trading Commission (CFTC) has managed to secure an entry of default against Christopher Peck, an employee of Madison Forex International, LLC and Chadwick Grayson Bauer & Co., Inc. The order was entered by a Clerk of the Florida Southern Bankruptcy Court last week.
Let’s recall that Madison Forex International, LLC and Chadwick Grayson Bauer & Co., Inc. were targeted in a Forex fraud case launched by the CFTC back in October 2005. In February 2019, the regulator took another action against Peck. This time the action takes the form of adversary proceedings in a bankruptcy case under Chapter 7 of Title 11 of the United States Code. Put briefly, the Commission’s claims concern the debts listed by Peck when he filed a petition for Chapter 7 bankruptcy. The CFTC seeks to determine that the amount of money Peck owes under the CFTC Enforcement Action is not dischargeable.
There is a consent order in the enforcement case from 2005 including several injunctions against Peck regarding registration and trading. The consent order also requires Peck to make restitution to enumerated customers in the amount of $550,000, plus pre-judgment interest. The total restitution due as of January 31, 2019, is $1,195,222.72, and continues to accrue interest at a rate of 4.99% per year until paid.
The consent order also assessed Peck a civil monetary penalty of $380,000, plus post-judgment interest. As of January 31, 2019, the Civil Monetary Penalty, along with post-judgment interest, amounts to $622,320.13, and continues to accrue interest at a rate of 4.99% per year until paid.
On November 13, 2017, Peck filed a petition for Chapter 7 bankruptcy, listing the debts incurred in the CFTC Enforcement Case as scheduled debts.
In its latest action against Peck, the CFTC seeks judgment against him, that would determine that debts for restitution and civil monetary penalties are not dischargeable in this bankruptcy case.
Peck was required to file an answer by Monday, March 25, 2019, to the CFTC complaint. He failed to file a responsive pleading or motion before the time specified. The CFTC requested that the clerk of the Court enter default against Christopher Peck in the adversary proceeding and the request was granted late last week.