Head of Global FX Club has civil action against him stayed, as criminal case advances

Maria Nikolova

Forex fraud triggers criminal indictment for Michael S. Wright, a controlling person of Wright Time Capital Group LLC, d/b/a Global FX Club.

Forex fraud is taken extremely seriously by US authorities, with one more piece of proof for that provided by the New York Southern District Court where proceedings against Michael S. Wright and his firm Wright Time Capital Group LLC, d/b/a Global FX Club have been developing on two fronts – civil and criminal.

In June, the Commodity Futures Trading Commission (CFTC) filed a civil case against Mr Wright and his companies, charging them with fraud, misappropriation, and issuing false account statements in connection with a pooled investment in Forex trading.

Specifically, the CFTC Complaint alleged that from approximately August 2010 through the present, Defendants engaged in a fraudulent scheme to solicit more than $400,000 from at least 10 members of the public, promising to use pool participant funds for FX trading. Defendants allegedly traded only a part of pool participants’ funds and misappropriated the bulk of those funds for unauthorized personal or business expenses such as food, clothing, jewelry, and entertainment.

On August 30, 2017, the New York Southern District Court issued an Order to Stay the civil action. This, however, was prompted by the fact that Mr Wright is also a defendant in a criminal case.

The criminal action, captioned USA v. Wright (1:17-cr-00459), relates to the same events and shares allegations with the civil case. Mr Wright is accused, inter alia, of having falsely represented to investors that their money was used in off-exchange Forex transactions and of having utilized investor funds in a Ponzi-like manner to make payments to other investors.

According to the indictment, Mr Wright is charged on two counts: commodity fraud and wire fraud. He has to forfeit all property that is derived from proceeds from the offenses committed, including the sum of money generated from the said offenses.

Mr Wright was arraigned on July 28, 2017. He pleads not guilty to the criminal charges.

Read this next

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

“The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

<