A New Jersey state court tonight (Tuesday) partially granted My Forex Fund’s claims in the CFTC’s lawsuit against the company. The court ordered the release and return of most of the assets, worth about $100 million, belonging to founder and CEO Murtuza Kazmi. However, his $12.08 million of these assets will remain frozen.
Additionally, the court decided to remove the current temporary administrator and ruled that a new administrator would not be appointed.
In September, the CFTC filed charges against My Forex Funds, its CEO, and related entities, alleging fraud totaling more than $300 million. The complaint charges the defendants with deceptive practices in connection with leveraged retail foreign exchange and leveraged retail commodity trading.
“The CFTC’s lawsuit against the My Forex Funds defendants is emblematic of our commitment to eliminating retail fraud in our marketplace,” said Ian McGinley, CFTC’s Director of Enforcement. Any person who offers or enters into a leveraged retail exchange contract without registration or who offers or enters into a leveraged retail product contract outside of an exchange is clearly in violation of the law. ”
However, My Forex Fund recently claimed that the CFTC made “recklessly mischaracterized transfers” involving large amounts of tax liability. Kazmi and his legal team disputed fundamental aspects of the case and took issue with the goods watchdog. They questioned the alleged fraud.
Additionally, the company questioned the CFTC’s jurisdiction over the transaction. According to a recent report by Finance Magnates, his defense team dismissed his CFTC charges. My Forex Funds claimed to have never solicited or accepted investments from customers.
The CFTC’s complaint exposed a series of deceptive practices, including suspending customer accounts under false pretenses, misleading fee assessments, and the company’s use of specialized software to execute customer orders at disadvantageous prices.
Mr. Murteza Kazmi, CEO of My Forex Funds
While the complaint claims that My Forex Funds prioritizes the success of its customers, it alleges that such practices actively worked against its customers, reducing profits and increasing losses.
Legal action extends beyond U.S. borders. The Ontario Securities Commission has issued temporary cease-and-desist orders against Traders Global Group Inc. and Kazumi Inc., demonstrating the international ramifications of the alleged fraud.
Unraveling the CFTC’s suspicions
A crucial point in the company’s defense strategy was the revelation that its customers were not investing any money. Instead, the company’s equity funded all accounts. The customer allegedly engaged in trading services as an independent contractor, with the majority of the transactions being conducted in mock accounts.
My Forex Funds’ defense alleges that the CFTC misrepresented two large pre-authorization payments, one of C$27 million and one of C$4,500,000, to the CEO of My Forex Funds. In contrast, the defense claims these funds were sent to the Canadian Taxation Authority.
The motion also questioned the unprecedented nature of the statutory restraining order, arguing that shutting down a business and freezing personal assets is an extreme measure.
A New Jersey state court tonight (Tuesday) partially granted My Forex Fund’s claims in the CFTC’s lawsuit against the company. The court ordered the release and return of most of the assets, worth about $100 million, belonging to founder and CEO Murtuza Kazmi. However, his $12.08 million of these assets will remain frozen.
Additionally, the court decided to remove the current temporary administrator and ruled that a new administrator would not be appointed.
In September, the CFTC filed charges against My Forex Funds, its CEO, and related entities, alleging fraud totaling more than $300 million. The complaint charges the defendants with deceptive practices in connection with leveraged retail foreign exchange and leveraged retail commodity trading.
“The CFTC’s lawsuit against the My Forex Funds defendants is emblematic of our commitment to eliminating retail fraud in our marketplace,” said Ian McGinley, CFTC’s Director of Enforcement. Any person who offers or enters into a leveraged retail exchange contract without registration or who offers or enters into a leveraged retail product contract outside of an exchange is clearly in violation of the law. ”
However, My Forex Fund recently claimed that the CFTC made a “recklessly mischaracterized transfer” involving large amounts of tax. Kazmi and his legal team disputed fundamental aspects of the case and took issue with the goods watchdog. They questioned the alleged fraud.
Additionally, the company questioned the CFTC’s jurisdiction over the transaction. According to a recent report by Finance Magnates, his defense team dismissed his CFTC charges. My Forex Funds claimed to have never solicited or accepted investments from customers.
The CFTC’s complaint exposed a series of deceptive practices, including suspending customer accounts under false pretenses, misleading fee assessments, and the company’s use of specialized software to execute customer orders at disadvantageous prices.
Mr. Murteza Kazmi, CEO of My Forex Funds
While the complaint claims that My Forex Funds prioritizes the success of its customers, it alleges that such practices actively worked against its customers, reducing profits and increasing losses.
Legal action extends beyond U.S. borders. The Ontario Securities Commission has issued temporary cease-and-desist orders against Traders Global Group Inc. and Kazumi Inc., demonstrating the international ramifications of the alleged fraud.
Unraveling the CFTC’s suspicions
A crucial point in the company’s defense strategy was the revelation that its customers were not investing any money. Instead, the company’s equity funded all accounts. The customer allegedly engaged in trading services as an independent contractor, with the majority of the transactions being conducted in mock accounts.
My Forex Funds’ defense alleges that the CFTC misrepresented two large pre-authorization payments, one of C$27 million and one of C$4,500,000, to the CEO of My Forex Funds. In contrast, the defense claims these funds were sent to the Canadian Taxation Authority.
The motion also questioned the unprecedented nature of the statutory restraining order, arguing that shutting down a business and freezing personal assets is an extreme measure.
