CFTC Charges ROFX and 5 Promoters for $58 Million FX Fraud

The Commodity Futures Trading Commission (CFTC) has continued its bust against fraudulent investment schemes and recently filed a civil enforcement action against five individuals and five companies for a massive 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 fraud, involving at least $58 million.

Announced on Friday, the complaint filed at a Florida court includes charges of fraud, misappropriation of funds, and registration violation.

The five named individuals named in the complaint are Jase Davis, Borys Konovalenko, Anna Shymko, Alla Skala, and Timothy Stubbs, all of whom are United States residents. The named companies are Notus LLC, Easy Com LLC, Global E-Advantages LLC, Grovee LLC, and Shopostar LLC, but all of them were operating under the brand ROFX.

Operating as ROFX

In addition, the complaint alleged that the individuals and the companies were operating between January 2018 and September 2021. They operated from the ROFX.net website and claimed to be utilizing a ‘highly successful automated trading robot with guaranteed coverage of losses’.

They targeted customers from both the United States and overseas. Over 1,100 customers opened trading accounts with the platform. Though, it is charged for fraudulently soliciting and misappropriating at least $58 million.

“As alleged, the defendants received at least $58 million from customers during the relevant period, all of which the defendants misappropriated by wiring to non-trading corporate entities in Poland, Thailand and elsewhere, as well as to the individual defendants themselves,” the regulatory announcement stated.

“The complaint also alleges that the companies acted as futures commission merchants by doing business as ROFX, soliciting or accepting orders for retail forex transactions via the ROFX website, and accepting funds in or in connection with such transactions without being registered with the CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term.”

The regulator is now seeking restitution for the defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and permanent injunctions against further violations.