FX fraudster Brett Hartshorn agrees to pay $890,000 in restitution

Maria Nikolova

The proposed settlement with the CFTC has been filed with the New York Southern District Court.

A couple of months after the United States Commodity Futures Trading Commission (CFTC) said it had reached a settlement in principle with Brett G. Hartshorn, who is charged with Forex fraud, the regulator has filed a proposed consent judgment with the New York Southern District Court.

The document, submitted at the Court on May 12th and seen by FinanceFeeds, directs Hartshorn to pay restitution of $890,000.

Under the proposed settlement, Hartshorn is permanently restrained, enjoined and prohibited from defrauding other persons. He is also prohibited from acting as an unregistered CTA, entering into transactions involving commodity interests, having any commodity interests traded on his behalf, applying for registration with the CFTC, as well as acting as an employee of an entity registered with the Commission.

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 is accused of fraud in connection with retail Forex transactions, failure to register as a CTA and failure to comply with relevant CTA requirements.

He often resorted to emotional pleas with the Court, claiming that he “is lost” but that he can still “make a positive difference in this world”.

These emotional claims, however, did not have any particular impact on the Court’s rulings. In September 2018, Judge Andrew L. Carter of the New York Southern District Court signed an order denying the Motion to Dismiss by Hartshorn. In November 2018, the CFTC obtained a certificate of default against the defendant.

Thanks to the proposed consent order, the case is now close to a resolution.

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The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.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

<