CFTC Charges Texas-Based Willie Lee Cloud, Jr., Principal & Agent of C & R Financial, with Operating Ponzi Scheme
Cloud, Jr. Charged with Violating CEA, Misappropriating Customer Funds, Providing False Account Statements
Overview
CFTC filed complaint against Willie Lee Cloud, Jr. (Cloud), principal and agent of C & R Financial, Inc. in Texas, for soliciting at least $200,000 from nine investors which he claimed would be put in individual forex trading accounts
Cloud advertised to customers that [...]
Updates to BSA E-Filing System for FinCEN Suspicious Activity Reports
FCMs and IBs Can Use BSA E-Filing System To File Several FinCEN Forms, Namely Suspicious Activity Reports
FinCEN (Financial Crimes Enforcement Network) recently improved its online BSA (Bank Secrecy Act) e-filing system. The security-enhanced site can be used for free and allows users (such as FCMs and IBs) to submit FinCEN forms more efficiently. Your firm’s [...]
NFA Release on Forex Account Statements
[http://www.forexlawblog.com]
New Rule Requires Better Reporting to Retail Forex Investors
Forex Dealer Members (FDMs) are subject to NFA oversight because they are required to be registered with the CFTC and also to be members of the NFA. On June 1 of this year, FDMs will need to comply with heightened disclosure requirements to their retail forex investors. [...]
Another Forex Fraud
CFTC Freezes Assets of Fraudulent Forex Traders
The CFTC announced another forex scam targeting retail forex investors. Like many frauds which we have detailed over the last few months, this fraud would likely have been detected earlier if the investors had made some basic inquiries into the claims made by the fraudsters. This action again shows [...]
Forex Directory
Directory for Forex Platforms
For some forex managers trying to decide upon a forex platform can be a very difficult decision. Each platform has different charactistics and costs. The press release below describes a new website which rates the different forex platforms based on actual user feedback. You will be able to find out which platform [...]
NFA Interpretive Notice Re: Hypothetical Performance Results
One of the most important area of the forex disclosure documents is the discussion of past results. Of increased importance in this area is the disclosure of hypothetical trading results. The CFTC and the NFA believe strongly that hypothetical performance results must be presented in marketing materials in a fair and balanced way.
The release below [...]
NFA Proposes New Compliance Rule 2-43 for Forex Dealer Members
(www.forexlawblog.com) Today the NFA proposed a completely new compliance rule for Forex Dealer Members. The proposed new Compliance Rule 2-43 Forex Orders has two essential parts: (1) a requirement that FDMs cannot cancel customer orders except in certain circumstances, and (2) a requirement that no single account can contain offsetting positions in the same currency [...]
NFA Proposes Additions to Forex Compliance Rules
(www.forexlawblog.com) Today the NFA proposed additions to its compliance rules for NFA Members and Associated Persons who deal with off-exchange foreign currency transactions. There were four central changes which were proposed:
Forex Law Question – Forex Managers and the Series 7 Exam
Question: If I trade spot forex in a fund structure, do I need a Series 7 exam license?
Answer: If a hedge fund manager trades in the spot off-exchange foreign currency (forex) markets and is not associated with a broker dealer, then the investment activities of the manager do not require a series 7 exam license.
CFTC v. Frankwell
U.S. 9th Circuit Court of Appeals
CFTC v FRANKWELL
Argued and Submitted September 17, 1996–San Francisco, California
Filed October 29, 1996
OPINION
CHOY, Circuit Judge:
Plaintiff-appellant Commodity Futures Trading Commission (”CFTC”) appeals the summary judgment granted in favor of defendant-appellee Frankwell Bullion, Ltd. and its affiliates (”Frankwell”). The district court held that Frankwell was exempted from the jurisdiction of the CFTC [...]