Introduction:
Tonight (Tuesday), a New Jersey judge granted My Foreign exchange Fund’s request to join the CFTC’s case against the company. The court ruled the releasing and restitution my forex funds court case of the majority of Murtuza Kazmi’s assets, estimated at around $100 million. Nevertheless, $12.08 m of these valuables will be held in escrow. Furthermore, the court opted to release the current permanent receiver and declined to appoint a new one.
The Securities and Exchange Commission filed a complaint into My Forex Funds, its president and CEO, and other organisations in late August, alleging fraudulent acts totaling more than $300 million. The defendants were accused of misleading tactics involving leveraged retailer foreign exchange and unsecured retail commodity trades in this case.
My Forex Funds’ CFTC Complaint:
My Forex Fund, on the other hand, recently claimed which the CFTC “recklessly misrepresented transfers” including hefty tax payments. Kazmi and his legal representatives contested the lawsuit’s core elements, pitting it against my forex funds court case the commodities watchdog. They questioned the suspected fraudulent acts. Furthermore, the firm contested the CFTC’s legitimacy to its dealings. in a recent Finance Magnates story, its defence team denied the CFTC’s allegations. My Forex Funds, it said, never requested or accepted consumer investments.
Misclassification of Tax Payments:
On August 28, the CFTC charge My foreign exchange accounts and its CEO for fraud and won a court order freezing both the business’s and the man’s assets. According to the charges, the corporation illegally transferred monies to Kazmi’s personal bank accounts. In late September, the defendants’ lawyers challenge the CFTC’s findings, claiming that the agency “irrationally misrepresent transfers between and among Members’ savings accounts prior the SRO was enter.” It was limited to CA$31.5 thousand, which was hand to Canadian tax authorities, according to Our Forex Funds.
In the subsequent court decision, the judge acknowledged the prop firm’s testimony and unfroze Kazmi’s assets, with only roughly $12 million frozen upon a recalculation.
My Forex Funds Goes After the Regulator:
“Until the CFTC’s new filing, the Court underlying Defendants were subject to the misimpression that the Fca first became aware of the errors in Mr. [Matthew’s] Edelstein’s [the investigators] declaration following the complaint and initial SRO petition were file,” MFF wrote in its request for reconsideration. “Although that information has been confine to a footnote to the CFTC’s filing (as well as itself is alarming and in contradiction to the standards plan of the government’s counsel) and character to the CFTC as ‘irrelevant’…, the CFTC presently accepts that ‘the OSC email he Edelstein soon before the filing in the statement indicating that the transfer of assets was comprise of taxation payments’.”
Untangling the CFTC’s Allegations:
The discovery that customers’ monies were never invest; instead. The company’s assets fund all accounts was a critical point to the firm’s defence strategy. Customers were allegedly acting as independent contractors, providing trading services, with a major fraction of them taking place on simulated accounts.
According to My Forex Funds’ defence, the CFTC disguised two large pre-authorized. contributions of $27,000,000 CAD as $4,500,000 CAD as transactions to My Forex Investments’ CEO. The defence, on the other hand, claims that these payments were direct to Canadian tax officials. The motion also question the statutory restraining order’s unprecedent character. Stating that shutting down an operation and freezing one’s private assets is a harsh measure.
Conclusion:
The CFTC’s complaint revealed a number of fraudulent tactics, including falsely terminating customer accounts. Miscalculating commissions, and deploying specialised software that executed customer orders at unfavourable rates. Murteza Kazmi is the CEO of My Forex Funds. According to the lawsuit, such tactics actively worked against clients, diminishing revenue and increasing losses. Despite the fact that My Forex Funds professed to prioritise customer success. The legal activities are not limit to the United States. Traders Global Solutions Inc. and Kazmi have been grant a temporary cease-trade order by the Ontario Securities Commission.
