Court approves CFTC’s settlement with FuturesFX and Simon Jousef

Maria Nikolova

FuturesFX and Simon Jousef will have to pay $1.3 million in restitution, as well as a civil monetary penalty in the amount of $450,000.

Judge Paul A. Engelmayer of the New York Southern District Court has signed a Consent Order for permanent injunction, civil monetary penalties, and other relief against FuturesFX and Simon Jousef.

The entry of the order happens just a couple of days after the United States Commodity Futures Trading Commission (CFTC) filed a proposed consent order in its action against FuturesFX and its principal Simon Jousef.

As per the order, seen by FinanceFeeds, the defendants agree to the entry of the Consent Order for Permanent Injunction, Civil Monetary Penalties and Other Equitable Relief against them. Based upon and in connection with the foregoing conduct, pursuant to Section 6c of the Act, 7 U.S.C. § 13a-1(2018), the defendants are permanently restrained, enjoined, and prohibited from directly or indirectly acting as a CTA, using the mails or any means or instrumentality of interstate commerce to directly or indirectly employ any device, scheme, or artifice, including any advertising, to defraud any client or participant or prospective client or participant, or engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or participant or prospective client or participant, in violation of Section 40(1)(A) and (B) of the Act, 7 U.S.C. § 60(1)(A) and (B) (2018), and Commission Regulation 4.41(a)(l) and (2), 17 C.F.R. § 4.41(a)(1) and (2) (2019).

The defendants agree to pay, jointly and severally, restitution in the amount of $1,300,000, representing the gains received in connection with such violations, plus post-judgment interest. The defendants will also hav to pay, jointly and severally, a civil monetary penalty in the amount of $450,000, plus post-judgment interest.

Let’s recall that, in September 2019, the CFTC charged Canadian resident Simon Jousef and his business FuturesFX with fraudulently soliciting people, in the U.S. and abroad, to subscribe to a trading system that included a supposedly “live” Forex and commodity futures online trading room, educational videos, and online support. In addition, the CFTC’s complaint charged Jousef with making false or misleading statements to the National Futures Association (NFA).

Specifically, the CFTC complaint alleges that from at least July 1, 2014 to on or about January 31, 2016, Jousef and FuturesFX fraudulently promoted and sold access to the trading system ostensibly to provide, among other things, a methodology for determining when to enter and exit forex and commodity futures contracts. According to the complaint, to induce members and prospective members to purchase subscriptions to the trading system, the defendants made numerous materially false or misleading statements and omissions on the company’s websites at futuresfx.ca and globaltraderoom.com, in the online trade room, and in email advertisements.

The CFTC’s complaint alleges that, as a result of the fraudulent solicitation scheme, the defendants received approximately $1.3 million in subscription fees from more than 300 members located in the United States and other countries.

In addition, the complaint alleges that Jousef knowingly made false or misleading statements regarding material facts to the NFA when he submitted annual CTA registration updates concerning FuturesFX’s predecessor company.

Read this next

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

Institutional FX

FXSpotStream volume ends string of declines on January rebound

Trading volumes on institutional FX platforms surged in January as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are both losing momentum.

Industry News

DeFi firm Aurox launches SEC-compliant crowdfunding campaign on tZERO

“This is a great opportunity for us to raise capital from our community and the broader public on a leading fully regulated platform. We are confident that the tZERO Markets platform will provide us with the exposure and reach we need to attract a diverse investors to support our business growth.”

Industry News

Morgan Stanley launches ETF platform with six ESG-focused products by Calvert

“These new ETFs will resonate strongly with investors who seek competitive investment results while promoting positive change and supporting companies that are leaders in improving long-term shareholder value and societal outcomes.”

<