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


US and South Korea seek extradition of Luna founder Do Kwon

Both US and South Korean officials are seeking to extradite Terraform Labs CEO Do Kwon, just hours after he was arrested in Montenegro.

Retail FX

Pepperstone UK doubles profit, client assets in 2022

The London-based entity of Australian FX broker Pepperstone has reported its financials for the fiscal year ending June 30, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.

Institutional FX

CLS FX volume rises to just shy of $2 trillion in February

Foreign exchange settlement provider, CLS Group saw strong volumes in February 2023 as the banking crisis continues to weigh on a world economy that’s yet to fully recover from the Russia-Ukraine war’s shocks.

Digital Assets

Binance restores trading after 2-hour outage

Binance suffered a breakdown on its trading engine that lasted for about two hours, but the premier cryptocurrency exchange finally managed to restore normal operations at around 14:00 UTC.

Digital Assets

Tether earns $700 million in Q1, taking excess reserves to $1.6 billion

Tether chief technology officer Paolo Ardoino said the world’s largest stablecoin issuer expects to earn more than $700 million in the January-Mach quarter, which will be added to the reserve backing its stablecoin (USDT).

Digital Assets

Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures

Narwhal Finance received strong support from Animoca Ventures and angel investors in a $1 million seed funding round, reinforcing the company’s vision of providing an accessible platform to all.


SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products.