Utah Court agrees to give more time to CFTC in case against Tallinex, GTF

Maria Nikolova

The CFTC has asked for more time in order to pursue settlement talks with GTF, the alleged introducing broker of Tallinex in the United States.

Magistrate Judge Evelyn J. Furse of the Utah District Court on Wednesday issued an order granting the time extension requested by the United States Commodity Futures Trading Commission (CFTC) in its case against retail FX broker Tallinex and General Trader Fulfillment (GTF), Tallinex’s alleged introducing broker in the US. The CFTC has asked for the change to the schedule in order to pursue settlement talks with GTF.

As per the Order issued on December 6, 2017, the close of fact discovery is scheduled for June 29, 2018, whereas the last day of expert discovery is September 28, 2018. The final pretrial conference is scheduled for March 25, 2019, whereas the jury trial’s date is April 8, 2019.

Let’s recall that CFTC and GTF assess the settlement probability as fair. The position of Tallinex is yet unclear. The mail to Tallinex’s Estonian address was returned as undelivered, whereas the broker got the legal papers related to the case at its address in Saint Vincent and the Grenadines on August 15, 2017 but there has been no reaction by the company since.

Let’s recall that under the CFTC complaint, from at least September 2012 to at least September 2016, the defendants solicited or accepted orders from retail FX customers located in the United States, without having the necessary registration. The regulator is seeking (inter alia) a Court order requiring Defendants to pay civil monetary penalties in amounts the greater of: (i) $170,472 for each violation of the Act and Regulations; (ii) triple their monetary gain.

GTF has made its stance regarding the CFTC allegations clear by denying that it was Tallinex’s IB. GTF has admitted it has never been registered with the CFTC, but denied that it was required to be registered with the regulator. GTF also denied that it had received commission on revenue generated by trading activity from Tallinex. In addition, GTF denied that it solicited US customers to open forex trading accounts at Tallinex.

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