CFTC seeks default order against unresponsive Forex broker Tallinex

Maria Nikolova

Nearly a year after the US regulator launched its lawsuit against Tallinex, it pushes for a default judgement against the retail FX broker.

Everyone’s patience has certain limits and, apparently, the limits of the patience of the United States Commodity Futures Trading Commission (CFTC) which has been waiting in vain for a response from retail FX broker Tallinex over fraud allegations have been breached.

The regulator launched civil proceedings against the broker in May last year and dedicated several months to finding a way to serve the broker. As per the filings with the Utah District Court, Defendant Tallinex was served with the CFTC’s Complaint and a duly executed Summons on August 15, 2017 at the broker’s address in Saint Vincent and the Grenadines. However, up to date the broker has not filed an answer or any other responsive pleading in this action.

That is why, the US regulator is asking the Court’s Clerk to enter a default against Tallinex. This step is usually a precursor to the entry of a default judgment against the defendant by the Court.

Let’s recall that under the CFTC complaint, from at least September 2012 to at least September 2016, Tallinex and its introducing broker General Trader Fulfillment (GTF) solicited or accepted orders from retail FX customers located in the United States, without having the necessary registration. The regulator is seeking (inter alia) a Court order requiring Defendants to pay civil monetary penalties in amounts the greater of: (i) $170,472 for each violation of the Act and Regulations; (ii) triple their monetary gain.

Unlike unresponsive Tallinex, GTF has made its stance regarding the CFTC allegations clear by denying that it was Tallinex’s IB. GTF has admitted it has never been registered with the CFTC, but denied that it was required to be registered with the regulator. GTF also denied that it had received commission on revenue generated by trading activity from Tallinex. In addition, GTF denied that it solicited US customers to open forex trading accounts at Tallinex.

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