CFTC charges Texas-Based Financial Robotics, Inc. for Fraudulent Forex Scheme
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Lee H. Rosenthal of the U.S. District Court for the Southern District of Texas entered an Order of default judgment and permanent injunction against Defendant Financial Robotics, Inc. (FinRob), a Texas corporation. The court’s Order requires FinRob to pay restitution of $827,000 and a civil monetary penalty of $2,481,000. The Order also imposes permanent trading and registration bans against FinRob and prohibits it from violating provisions of the Commodity Exchange Act, as charged.
The Order, entered on October 9, 2014, stems from a CFTC Complaint filed on June 29, 2011.The Order finds that, from at least June 2008, FinRob, and its controlling person, Defendant Mark E. Rice, operated a fraudulent scheme that solicited approximately $1.7 million from one individual to trade leveraged off-exchange foreign currency contracts.
According to the Order, Defendants falsely told their customer, among other things, that his investment was “risk free” and insured against loss and that the return of his principal was guaranteed. The Order further finds that Defendants misappropriated at least $576,000 of customer funds by transferring the money to unrelated Rice-controlled companies, and thereafter spending at least $404,000 of those funds for Rice’s personal and business expenses.
Source: cftc-CFTC charges Texas-Based Financial Robotics, Inc. for Fraudulent Forex Scheme
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