CFTC’s David Terrell to appear in Tallinex case, as deadline for amended pleadings looms

Maria Nikolova

David Terrell, known for his role in CFTC legal actions against foreign FX companies breaking US laws, will act as counsel for the regulator in its action against retail Forex broker Tallinex.

The United States Commodity Futures Trading Commission (CFTC) is beefing up its team in the civil case it launched against retail FX broker Tallinex and its purported introducing broker in the United States – General Trader Fulfillment (GTF).

The CFTC complaint alleges that from at least September 2012 to at least September 2016, the defendants 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.

Whereas GTF has made its stance regarding the CFTC allegations clear by denying that it was Tallinex’s IB, Tallinex has not yet filed an Answer to the Complaint or otherwise appeared to defend itself in this lawsuit. The nature of Tallinex’s defenses are still therefore unknown.

According to documents, filed with the Utah District Court on September 29, 2017, Tallinex got the legal papers related to the case at its address in Saint Vincent and the Grenadines on August 15, 2017. However, there has been no reaction by the brokerage since.

The sluggishness of these formal proceedings underlines the difficulties that cases brought by US regulators against companies based overseas imply. The CFTC, however, is experienced in tackling such matters. This is highlighted by the announced appearance of David Terrell as counsel for the CFTC in this case.

The Court was notified of Mr Terrell’s appearance as a counsel earlier this week. He is known for having been a part of the CFTC enforcement team in a number of legal actions against foreign FX companies accused of breaking US laws. These cases include ones against Australian Firm Halifax Investment Services and another Australian firm – Enfinium Pty Ltd.

Amended Pleadings and Joinder of Parties in the case, captioned Commodity Futures Trading Commission v. Tallinex et al (2:17-cv-00483), are due by November 3, 2017. The Final Pretrial Conference is scheduled for November 26, 2018, whereas a Jury Trial is set for December 10, 2018.

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