NY Court enters order for permanent injunction and monetary penalty against head of All City Investments

Maria Nikolova

All City Investments and its head Jamal Y. Vance are defendants in a civil case accusing them of Forex fraud and of failure to register as Commodity Trading Advisors with the CFTC as required.

Judge Alison J. Nathan from the New York Southern District Court on Wednesday signed a Consent Order for Permanent Injunction, Civil Monetary Penalty and Other Equitable Relief against Jamal Y. Vance, head of All City Investments. The company and Mr Vance have been defendants in a civil action brought by the United States Commodity Futures Trading Commission (CFTC), which has accused them of Forex fraud and of failure to register as Commodity Trading Advisors with the CFTC as required.

Last week, the CFTC filed a motion for a final judgement by default against All City, because the company has not participated in any court conferences, provided initial disclosures or responded to any of the Commission’s discovery demands including answering the Commission’s requests for interrogatories and/or responding to the Commission’s demand for documents. The proposed consent order concerning Jamal Y. Vance was also filed last week.

All City solicited the retail public using its website, allcityinvestments.com for the purpose of trading in forex. The website advertised “the advantages of forex trading” and claimed that “we help clients grow their wealth in a recession proof vehicle” by “growing wealth in WEEKS NOT YEARS!” The website also referred to All City as a “forex trader/wealth accumulation strategist.”

The company also presented a graph with an accompanying table and text that falsely and misleadingly showed “2,675.10% growth” from December 2013 through September 2015. It further falsely and/or misleadingly claimed that All City performed 444 trades during that timeframe broken down as follows: “Profit Trades: 442 (99.55%)” and “Loss Trades: 2 (0.45%).” The regulator alleges that the information on the trading graph, table, and text was all false and/or misleading.

The Consent Order against Mr Vance effects settlement of all charges alleged in the complaint against him without a trial on the merits or any further judicial proceedings. As per the Order, Mr Vance does not admit or deny the allegations of the CFTC Complaint or any findings or conclusions in this Consent Order, except as to jurisdiction and venue, which he admits.

He is permanently restrained, enjoined and prohibited from directly or indirectly: cheating or defrauding, or attempting to cheat or defraud, willfully making or causing to be made any false report or statement or willfully entering or causing to be entered any false record or willfully deceiving, or attempting to willfully deceive, any other person in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery, or swap, that is made, or to be made, for or on behalf of, or with, any other person in violation of the law. Defendant Vance is also permanently restrained, enjoined and prohibited from directly or indirectly trading on or subject to the rules of any registered entity. He is also ordered to pay a civil monetary penalty in the amount of $100,000.

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