CFTC Charges California-Based Highlands Capital Management, LP and Glenn Kane Jackson with Forex Scheme

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of an enforcement action charging Highlands Capital Management, LP, based in San Francisco, Calif., and its principal Glenn Kane Jackson of Tiburon, Calif., with operating a fraudulent off-exchange foreign currency (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) scheme.

Specifically, the CFTC complaint charges the defendants, in connection with the fraudulent scheme, with misappropriating customer funds, issuing false account statements to customers, misrepresenting Jackson’s success and background as a forex trader and misrepresenting the reasons why defendants could not honor customer withdrawal requests.

On June 17, 2010, the same day the complaint was filed under seal, the Honorable Samuel Conti of the U.S. District Court for the Northern District of California entered an order, also under seal, freezing assets held or controlled by the defendants and prohibiting the destruction of books and records. Both documents were unsealed by the court on June 23, 2010.

According to the complaint, beginning in January 2006 and continuing through December 2009, the defendants solicited and accepted at least $4.3 million from at least 23 customers for the purported purpose of trading forex. Of the approximate $4.3 million provided to Jackson by customers, approximately $1.6 million was traded and lost, about $600,000 was refunded to customers and the remaining $2.1 million remains unaccounted for.

The complaint alleges that Jackson claimed never to have experienced a single losing year trading forex. Actual domestic Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term accounts managed and controlled by Jackson, however, had consistent net losses each year from 2005 to 2009.

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