CFTC seeks default judgement against All City Investments over Forex fraud

Maria Nikolova

The CFTC has charged All City Investments, LLC with solicitation fraud in connection with off-exchange Forex transactions and with failure to register as a Commodity Trading Advisor as required.

The United States Commodity Futures Trading Commission (CFTC) is seeking to finalize the legal proceedings against All City Investments, LLC in a Forex fraud case. On Wednesday, October 18th, the regulator filed a motion for a final judgement by default against All City at the New York Southern District Court.

According to the Motion and the accompanying Declaration by Katie Rasor, a Trial Attorney at the Division of Enforcement of the CFTC, the regulator is moving the Court for an entry of a Final Judgment by Default, Permanent Injunction, Civil Monetary Penalties, and Other Statutory and Equitable Relief Against Defendant All City Investments, LLC.

All City and its President, Secretary, Member and controlling person Jamal Y. Vance are defendants in a civil case accusing them with solicitation fraud in connection with off-exchange foreign currency (forex) transactions and with failure to register as Commodity Trading Advisors (CTAs) with the CFTC as required.

All City solicited the retail public using its website, allcityinvestments.com for the purpose of trading in forex. The website advertised “the advantages of forex trading” and claimed that “we help clients grow their wealth in a recession proof vehicle” by “growing wealth in WEEKS NOT YEARS!” The website also referred to All City as a “forex trader/wealth accumulation strategist.”

The company also presented a graph with an accompanying table and text that falsely and misleadingly showed “2,675.10% growth” from December 2013 through September 2015. It further falsely and/or misleadingly claimed that All City performed 444 trades during that timeframe broken down as follows: “Profit Trades: 442 (99.55%)” and “Loss Trades: 2 (0.45%).” The regulator alleges that the information on the trading graph, table, and text was all false and/or misleading.

There has been no answer on behalf of All City with regard to the allegations. All City has not participated in any court conferences, provided initial disclosures or responded to any of the Commission’s discovery demands including answering the Commission’s requests for interrogatories and/or responding to the Commission’s demand for documents.

On top of the motion for a default judgement against All City, the CFTC also filed a proposed consent Order which, if entered by the Court, would resolve all claims against the only other Defendant in this action, Defendant Vance.

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