Tallinex’s defenses remain unknown in US case over illegal OTC FX offering

Maria Nikolova

Tallinex has until July 28, 2017 to answer or otherwise plead with regard to the CFTC complaint which charges the broker with four counts of violating the Commodity Exchange Act and Commission regulations.

The case the United States Commodity Futures Trading Commission (CFTC) has brought against offshore FX broker Tallinex and Utah-based GTF has become more complex, as the Estonian brokerage skipped an attorney meeting held on July 21, 2017.

According to the latest court filings, seen by FinanceFeeds, attorneys for GTF (General Trade Fulfillment), which is alleged to have been an introducing broker for Tallinex in the United States without having the necessary regulatory permissions, and attorneys for the CFTC participated in a conference last Friday.

Although Tallinex had received notice about the conference, it did not appear.

The report from the meeting states that Tallinex has been served with the CFTC Complaint in the matter and has until July 28, 2017 to answer or otherwise plead.

“Tallinex has not yet filed an Answer to the Complaint or otherwise appeared to defend itself in this lawsuit. The nature of Tallinex’s defenses are therefore unknown at this time”, the report says.

The participants in the Friday meeting have filed a detailed Discovery plan that includes 12 points of discovery concerning Tallinex. The list includes (inter alia): the size and corporate structure of Tallinex’s business, including its forex business; Tallinex’s process for establishing and creating its promotional material, including its website; Tallinex’s process for accepting and handling customer funds; Tallinex’s assets, liabilities and financial status, as well as Tallinex’s relationship with GTF.

There are at least 8 points in the Discovery plan with regard to GTF, ranging from the structure of its business, including affiliated companies, e.g., Green Chart, Secured University and its forex business, to the number of GTF customers that traded forex, including number of customers who traded with Tallinex.

GTF denies that it has referred customers to Tallinex to open a live forex account to begin trading, or otherwise acted as an introducing broker, as alleged by the CFTC.

The Attorney’s planning meeting report says that the potential for resolution before trial is fair and that this case should be referred to the court’s alternative dispute resolution program for mediation.

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