NY Judge extends stay of CFTC action targeting FX fraudster Jason Amada

Maria Nikolova

Judge Gregory H Woods of the New York Southern District Court has extended the stay through August 26, 2019.

Nearly one year has passed since the United States Commodity Futures Trading Commission (CFTC) launched an action against Jason Amada and Amada Capital Management LLC. The proceedings have not marked much progress, as indicated by the most recent filings with the New York Southern District Court.

Earlier today, Judge Gregory H Woods signed an order partially granting a motion to continue the stay of the CFTC action against Amada and ACM.

Currently, the defendant Jason Amada’s criminal case is on the Supreme Court, New York County, calendar for July 24, 2019 before Hon. Maxwell Wiley, J.S.C. The parties have been discussing a final disposition and an offer from the New York State Attorney General may be communicated at the July 24, 2019 appearance. Based on the status of the criminal proceeding, an extension of the stay was requested.

As per the order, seen by FinanceFeeds, the stay is extended through August 26, 2019. The parties are directed to submit a supplemental joint status letter no later than August 19, 2019.

The CFTC Complaint charges that, from at least February 2014 through at least November 2015, the Defendants fraudulently solicited potential clients to open individually managed trading accounts for off-exchange forex and hid substantial trading losses incurred as a result of Defendants’ managed forex trading.

The CFTC Complaint alleges that the Defendants fraudulently solicited clients for these accounts by, among other things, misrepresenting Defendants’ forex trading experience and profitability. Furthermore, the Defendants made the false claim that they would implement a hedging strategy that would prevent losses of more than one percent. Also, Defendants attempted to conceal mounting losses by transferring some of their commissions into a client’s account. The Complaint also alleges that the Defendants failed to register with the CFTC as required.

In its continuing litigation, the CFTC seeks civil monetary penalties, permanent registration and trading bans, disgorgement, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC Regulations, as charged.

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