Plato Data Intelligence.
Vertical Search & Ai.

Court Orders Release of MFF Founder’s Assets

Date:

The New Jersey court, tonight (Tuesday), partially granted My Forex Fund’s request in the lawsuit filed by the CFTC against the company. The court ordered the release and return of most of the assets belonging to Founder and CEO Murtuza Kazmi, valued at approximately $100 million. However, $12.08 million of these assets will remain frozen.

Additionally, the court decided to discharge the current temporary receiver and ruled against appointing a new one.

In September, the CFTC filed a complaint against My Forex Funds, its CEO, and associated entities, alleging fraudulent activities totaling over $300 million. This complaint accused the defendants of deceptive practices related to leveraged retail foreign exchange and leveraged retail commodity transactions.

Ian McGinley, the Director of Enforcement at the CFTC, said: “The CFTC’s case against My Forex Funds’ defendants is emblematic of our commitment to stamping out retail fraud in our markets. Anyone offering or entering into leveraged retail forex contracts without registration, or offering or entering into leveraged retail commodity contracts off-exchange, is acting in clear violation of the law.”

However, My Forex Fund recently contended that the
CFTC “recklessly mischaracterized transfers” involving significant
tax payments. Kazmi and his legal team challenged the fundamental aspects of the lawsuit, pitting it with the commodities watchdog. They raised questions
about the alleged fraudulent activities.

Additionally, the firm raised
questions over the jurisdiction of the CFTC over its transactions. According to a recent report by Finance Magnates,
its defense team dismissed CFTC’s accusations. It asserted that
My Forex Funds never solicited or accepted customer investments.

The CFTC’s complaint exposed a series of
deceptive practices, including terminating customer accounts under false pretexts,
misleading commission assessments, and using specialized software to execute
customer orders at unfavorable prices at the company.

Murteza Kazmi, CEO at My Forex Funds

The complaint asserts that such practices actively
worked against customers, reducing profits and increasing losses, all while My
Forex Funds claimed to prioritize customers’ success.

The legal actions extend beyond US borders. The
Ontario Securities Commission has issued a temporary cease trade order against
Traders Global Group Inc. and Kazmi, indicating the international ripple
effect of the alleged fraud.

Unraveling CFTC’s Allegations

A pivotal point in the firm’s defense strategy is the
revelation that customers never invested their funds; instead, the company’s
capital funded all accounts. Customers allegedly served as independent contractors,
engaging in trading services with a significant portion conducted on simulated
accounts.

My Forex Funds’ defense maintains that the CFTC
misrepresented two substantial pre-authorized payments of $27,000,000 CAD and
$4,500,000 CAD as transfers to My Forex Funds’ CEO. Contrary to
this, the defense contends that these funds were directed to the Canadian tax
authorities.

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.

The New Jersey court, tonight (Tuesday), partially granted My Forex Fund’s request in the lawsuit filed by the CFTC against the company. The court ordered the release and return of most of the assets belonging to Founder and CEO Murtuza Kazmi, valued at approximately $100 million. However, $12.08 million of these assets will remain frozen.

Additionally, the court decided to discharge the current temporary receiver and ruled against appointing a new one.

In September, the CFTC filed a complaint against My Forex Funds, its CEO, and associated entities, alleging fraudulent activities totaling over $300 million. This complaint accused the defendants of deceptive practices related to leveraged retail foreign exchange and leveraged retail commodity transactions.

Ian McGinley, the Director of Enforcement at the CFTC, said: “The CFTC’s case against My Forex Funds’ defendants is emblematic of our commitment to stamping out retail fraud in our markets. Anyone offering or entering into leveraged retail forex contracts without registration, or offering or entering into leveraged retail commodity contracts off-exchange, is acting in clear violation of the law.”

However, My Forex Fund recently contended that the
CFTC “recklessly mischaracterized transfers” involving significant
tax payments. Kazmi and his legal team challenged the fundamental aspects of the lawsuit, pitting it with the commodities watchdog. They raised questions
about the alleged fraudulent activities.

Additionally, the firm raised
questions over the jurisdiction of the CFTC over its transactions. According to a recent report by Finance Magnates,
its defense team dismissed CFTC’s accusations. It asserted that
My Forex Funds never solicited or accepted customer investments.

The CFTC’s complaint exposed a series of
deceptive practices, including terminating customer accounts under false pretexts,
misleading commission assessments, and using specialized software to execute
customer orders at unfavorable prices at the company.

Murteza Kazmi, CEO at My Forex Funds

The complaint asserts that such practices actively
worked against customers, reducing profits and increasing losses, all while My
Forex Funds claimed to prioritize customers’ success.

The legal actions extend beyond US borders. The
Ontario Securities Commission has issued a temporary cease trade order against
Traders Global Group Inc. and Kazmi, indicating the international ripple
effect of the alleged fraud.

Unraveling CFTC’s Allegations

A pivotal point in the firm’s defense strategy is the
revelation that customers never invested their funds; instead, the company’s
capital funded all accounts. Customers allegedly served as independent contractors,
engaging in trading services with a significant portion conducted on simulated
accounts.

My Forex Funds’ defense maintains that the CFTC
misrepresented two substantial pre-authorized payments of $27,000,000 CAD and
$4,500,000 CAD as transfers to My Forex Funds’ CEO. Contrary to
this, the defense contends that these funds were directed to the Canadian tax
authorities.

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.

spot_img

Latest Intelligence

spot_img

Chat with us

Hi there! How can I help you?