FuturesFX and its principal Simon Jousef to pay $1.3m in restitution to settle CFTC charges
The defendants will have to pay restitution of $1.3 million, plus a civil monetary penalty of $450,000.
The United States Commodity Futures Trading Commission (CFTC) has filed a proposed consent order in its action against FuturesFX and its principal Simon Jousef.
The document, submitted on April 20, 2020, at the New York Southern District Court, and seen by FinanceFeeds, represents a proposed Consent Order for Permanent Injunction, Civil Monetary Penalties, and Other Equitable Relief Against Defendants FuturesFX and Simon Jousef. If entered by the Court, the Consent Order would resolve all of CFTC’s claims against the defendants.
The defendants will have to pay restitution of $1.3 million, plus a civil monetary penalty of $450,000.
The proposed order also includes restrictions and bans. For instance, the defendants are permanently restrained, enjoined and prohibited from soliciting any funds for the purpose of purchase or selling of commodity interests. The defendants are also permanently restrained, enjoined and prohibited from applying for a registration with the Commission, as well as from acting as a principal registered with the Commission.
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.
