CFTC Takes Action Against "My Forex Funds" for Over $300 Million Fraud

The Commodity Futures Trading Commission (CFTC), a regulatory body, has lodged a legal complaint against Murtuza Kazmi and his associated entities collectively known as “My Forex Funds”. The main accusation is that they have unlawfully taken more than $300 million from individuals who aspired to become professional traders.

What Happened？

• The CFTC has formally charged “My Forex Funds”, which operates under both a New Jersey corporation and a Canadian business establishment, with deceitful activities. These activities relate to enticing customers to engage in leveraged retail forex contracts and retail commodity transactions.

• A significant move was made on August 29 when U.S. District Court Judge Robert B. Kugler signed an order. This order has frozen the assets of the accused parties. Additionally, they have been directed to present their books and other records for the CFTC's scrutiny. To manage and oversee the defendants' assets and operations, a temporary receiver has also been assigned.

• There's an upcoming hearing on September 11, presided over by Judge Zahid N. Quraishi, which will focus on a preliminary injunction related to this case.

Deeper Insights into the Case

“My Forex Funds” was apparently marketing an opportunity for the general public. They promised prospects the chance to become “professional traders”. The company's catchphrase was that their success was intertwined with that of their clients, suggesting a win-win scenario. They gave an impression that customers would be trading against third-party “liquidity providers”. However, the actual trading was mostly against Traders Global itself, the primary entity behind “My Forex Funds”.

The CFTC‘s complaint further reveals that the company didn’t act in their clients' best interests. Their tactics included terminating client accounts under vague reasons, applying hidden commissions, and using specific software to manipulate trade prices, which negatively impacted the customer trades.

The gravity of the situation becomes evident with the revelation that since November 2021, over 135,000 individuals have enrolled in their trading program. Collectively, these customers have paid at least $310 million in fees. Furthermore, the money acquired through these deceitful means was allegedly used by Kazmi for purchasing lavish homes and cars, with huge amounts transferred to his personal accounts.

Meanwhile,

On their official website, they addressed the issue with the CFTC.

International Repercussions

Parallel to the actions by the CFTC, the Ontario Securities Commission (OSC) in Canada has taken a decisive step. On August 29, the OSC issued an order temporarily halting all trading activities related to Traders Global Group Inc. and Murtuza Kazmi. The CFTC has publicly thanked the OSC for its collaboration.

The diligent personnel handling this case include Ashley J. Burden, Katherine Paulson, and several others from the Division of Enforcement.

For those interested in staying updated with this case and other similar news, its recommended to download the WikiFX App.

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In summary, it's essential for individuals to remain cautious and well-informed when venturing into the trading world, ensuring they engage with genuine and regulated entities.