CFTC sues alleged ‘bucket shop’ My Forex Funds after $310 million prop trading fraud
The CFTC asserts that more than 135,000 customers joined Traders Global’s trading program since November 2021, collectively paying over $310 million in fees.
The Commodity Futures Trading Commission (CFTC) has initiated legal action against Murtuza Kazmi and his entities, collectively known as “My Forex Funds,” alleging fraudulent solicitation of customers to engage in leveraged, margined, or financed retail foreign exchange (retail forex) and leveraged retail commodity transactions.
The CFTC filed a complaint in the U.S. District Court for the District of New Jersey against Murtuza Kazmi and his companies, Traders Global Group Inc. (a New Jersey corporation) and Traders Global Group Inc. (a Canadian business organization), both of which operated as “My Forex Funds.”
My Forex Funds’ entity Traders Global was the counterparty to most trades
The complaint contends that the defendants fraudulently marketed their services to customers, promising them the opportunity to become “professional traders” using Traders Global’s capital to trade against third-party “liquidity providers” and share in trading profits.
Traders Global was the counterparty to most customer trades rather than third-party liquidity providers. The defendants are accused of employing various tactics to minimize the chances of customers trading profitably, including terminating customer accounts, charging misleading commissions, executing orders at unfavorable prices, and disadvantaging successful customers to increase losses.
The CFTC asserts that more than 135,000 customers joined Traders Global’s trading program since November 2021, collectively paying over $310 million in fees.
Kazmi purportedly used proceeds from this alleged fraudulent scheme to acquire luxury properties, and vehicles, and transfer tens of millions of dollars to his personal accounts.
The CFTC’s legal action against Murtuza Kazmi and “My Forex Funds” reflects its commitment to safeguarding retail customers from fraudulent activities in the trading space.
As the case unfolds, the CFTC aims to secure restitution for affected investors and hold accountable those engaged in alleged fraudulent activities within the commodity and forex markets.
My Forex Funds seeks to unfreeze bank accounts
The domain MyForexFunds.com has since updated its landing page with a message to all traders: “Yesterday we learned that, without prior notice or discussion, a provincial securities regulator in Canada and the commodities regulator in the United States issued orders preventing us from trading securities or accessing funds in our bank accounts.
“Until these freeze orders are lifted or modified, our business is effectively, and at least temporarily, frozen as well.
“We will be reaching out to the regulators to discuss their concerns, and the first court date to determine whether the freeze orders should be lifted or modified is currently scheduled for September 11 in the US, with another hearing later that same week in Canada.
“We hope to have this matter resolved as soon as possible and will update this message as events occur.”
