Forex fraudster fails to have CFTC action against him dismissed

Maria Nikolova

Brett Hartshorn, who is accused of fraudulently soliciting at least $906,000 for purposes of Forex trading, fails to convince the Court that the CFTC action against him should be nixed.

Brett Hartshorn, whom the Commodity Futures Trading Commission (CFTC) accused of having fraudulently solicited at least $906,000 for purposes of Forex trading, has failed to have the action against him dismissed.

On Monday, September 17th, Judge Andrew L. Carter of the New York Southern District Court signed an order denying the Motion to Dismiss by Hartshorn. Let’s recall that what is dubbed to be a Motion to Dismiss is actually a very emotional email sent to the Court early this year.

In that email, the defendant asked the Court to dismiss the case against him, so he “can make a great and positive difference in this world”. He did not specify, however, how he planned to compensate his friends for the losses they suffered.

Let’s recall that the CFTC has found that from at least June 18, 2008 to in or around 2014 Hartshorn fraudulently solicited at least 13 individuals including members of his church and individuals he met in his local community, to invest in off-exchange foreign currency on a leveraged, margined, or financed basis and to give Hartshorn discretionary authority to trade forex on their behalf. Hartshorn solicited and/or managed at least $906,000 in client funds.

The defendant had challenged the CFTC action based on statute of limitations, improper venue, and lack of CFTC jurisdiction. On Monday, Judge Andrew L. Carter denied Brett Hartshorn’s motion to dismiss in its entirety.

The defendant had argued that the CFTC should be required to provide a more definite statement of their claims. But the Court found that the Complaint is quite specific, including granular details regarding many of the fraudulent activities the defendant is alleged to have undertaken.

The Court did not find that the arguments about the financial hardships the defendant claims to be enduring make legal proceedings in New York “prohibitively expensive” as opposed to Florida where he wanted the case transferred. The Court ruled that the case would continue in New York.

In addition, the Court finds that any appeal from this Order would not be taken in good faith, and therefore in forma pauperis status is denied for purpose of an appeal.

The case is captioned U.S. Commodity Futures Trading Commission v. Hartshorn (1:16-cv-09802).

Read this next

Executive Moves

Christine Kiener joins Saxo Markets UK as Head of Institutional Sales

“I have been very impressed by the strong track record, clear strategic pathway and ambition of the Saxo business. I am excited to start working with the team to further grow the institutional footprint which has been established in the UK.”

Industry News

CFTC charges Rathnakishore Giri with $12m Bitcoin ponzi scheme

“Identifying and policing fraud in these emerging markets may be difficult or delayed in light of the agency’s limited visibility in these markets”, said CFTC Commissioner Kristin Johnson.

Institutional FX

AbbeyCross raises $2.47m to develop FX market infrastructure for EM currencies

Many EM currencies are currently traded without full-price discovery, creating an unlimited compliance and regulatory risk.

Digital Assets

YouHodler enhances Multi HODL: faster rates and execution, lower fees

“We know some traders mentioned freezing issues when opening or closing a Multi HODL deal. Now, those problems are completely gone”.

Industry News

ASIC bans Funds United Pty director for six years

The six-year ban will prevent Ms. Hutchinson from controlling an entity that carries on a financial services business, and performing any function within the industry.

Inside View

Brave new world: Recruitment of fintech talent in the new UK immigration environment

In this article, solicitor Denise Osterwald outlines what UK businesses should do to attract top talent from abroad.

Digital Assets, Interviews

FX goes Crypto: Exclusive interview with BVNK’s Jonathan Cumberlidge

BVNK is the new name in the City of London. Co-founded by ex-TradFi Chris Harmse, Balfour Group founder Jesse Hamson-Struthers, and ex-TrueLayer George Davis, the firm provides a single platform to bridge fiat and crypto together. 

Digital Assets

AAX ranked world’s second largest spot exchange, only behind Binance

Crypto trading volumes experienced their first surge in activity since March as the majority of digital assets began their recovery from the recent grim price action, according to a new report by Cryptocompare.

Digital Assets

Bitpay teams up with Cardlytics to provide 15% cashback rewards

Crypto payment service provider Bitpay announced a partnership with Cardlytics Inc (NASDAQ:CDLX), which it says will offer more rewards for BitPay cardholders on its platform.

<