The US Commodity Futures Trading Commission, or CFTC, has recently filed a proposed consent order. This proposed consent order was submitted in the court actions against FuturesFX and the principle of the company, Simon Jousef.
Proposed Penalties Of more than $1.7 Million Total
The document was submitted on the 20th of April, 2020, and was filed at the Southern District Court of New York. This proposed Consent order is for Civil Monetary Penalties, Permanent Injunctions, as well as Other Equitable Relief. The filing was done against both Simon Jousef and his company, FuturesFX. Should the Court enter this filing, the Consent Order had the chance to resolve all claims the CFTC currently has against the defendants.
Should this Consent Order pass, the defendants will be mandated to pay civil monetary penalties of $450,000, as well as restitution totaling at $1.3 million.
General Prohibition Of Financial Activities
Furthermore, a range of bands and restrictions are incorporated in the proposed order. The defendants have been permanently restrained, enjoined, and prohibited from the solicitation of any funds to sell or purchase commodity interests. Furthermore, the Defendants have been permanently restrained, enjoined, and prohibited for applying or otherwise attempting to register with the CFTC itself. They’re further barred from acting as a principle registered by the CFTC, as well.
It was back in September of 2019 when the CFTC laid charges against Simon Yousef, a Canadian resident, as well as his business, FuturesFX. The charges were for fraudulent solicitation of people within the US and abroad to subscribe to a trading system. This system included a supposedly “live” commodity futures and Forex online trading room, as well as online support and educational videos. Furthermore, the CFTC charged Jousef himself for making misleading or false statements to the National Futures Association, or NFA.
Another allegation is that, during the times of the 1st of July, 2014, to about the 31st of January, 2016, Jousef and FuturesFX made fraudulent promotions. They sold access to the trading system to, among other things, provide a methodology for the determination of when to enter or exit commodity futures or forex contracts. As the complaint describes, the defendants made a range of materially misleading or false statements, as well as omissions on the company’s website, to help pull in prospective members to purchase subscriptions. They did this on the website of the company, futuresfx.ca, email advertisements, and globaltraderoom.com.
According to the CFTC’s allegations, the defendants have managed to receive an approximate $1.3 million in subscription fees through their solicitations. They did this for more than 300 members within the US, as well as in other countries.