CFTC – $58 Million Foreign Currency Fraud Scheme

CFTC Charges Five Entities and Five Individuals with $58 Million Foreign Currency Fraud and Misappropriation Scheme

Washington, DC (STL.News) The Commodity Futures Trading Commission Friday announced it filed a civil enforcement action in the U.S. District Court for the Southern District of Florida, charging five individuals and five companies with fraud, misappropriation, and registration violations in connection with a fraudulent foreign currency (forex) scheme.

The complaint charges defendants:

Jase Davis of Brandon, Mississippi
Borys Konovalenko of Ukraine
Anna Shymko of Duluth, Georgia
Alla Skala of Grand Island, New York
Fort Erie, Canada
Timothy Stubbs of Brandon, Mississippi and/or Atlanta, Georgia
Notus LLC d/b/a ROFX, a Colorado limited liability company
Easy Com LLC d/b/a ROFX, a New Hampshire limited liability company
Global E-Advantages LLC a/k/a Kickmagic LLC d/b/a ROFX, a Delaware limited liability company, and New York foreign limited liability company
Grovee LLC d/b/a ROFX, a Delaware limited liability company
Shopostar LLC d/b/a ROFX, a Colorado limited liability company.

The complaint alleges that during the relevant period, from approximately January 2018 through September 2021, the companies, acting as a common enterprise under the control of the individual defendants, used the ROFX.net website to fraudulently solicit and misappropriate at least $58 million from the U.S. and international customers for purported trading in forex.

The CFTC seeks restitution to defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and permanent injunctions against further violations of the Commodity Exchange Act and CFTC regulations, as charged.

Case Background

The complaint charges that, during the relevant period, defendants did business as ROFX and acted through ROFX’s website, ROFX.net, which solicited and obtained customers on defendants’ behalf and falsely claimed to trade forex utilizing a highly successful automated trading robot with guaranteed coverage of losses.  According to the complaint, over 1,100 customers opened trading accounts through the ROFX website and deposit funds via checks or wires to bank accounts in the name of one or more of the companies, all controlled by the individual defendants.

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 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.

The CFTC cautions victims that restitution orders may not result in the recovery of money lost, because the wrongdoers may not have sufficient funds or assets.

The Division of Enforcement thanks and acknowledges the assistance of the Alabama Securities Commission, Mississippi Secretary of State’s Office (Securities Division), Rankin County (Mississippi) Sheriff’s Office, Oregon Division of Financial Regulation, Ontario Securities Commission, and Polish Financial Supervision Authority.

CFTC Division of Enforcement staff members responsible for this case is:

Danielle Karst
Timothy J. Mulreany
George H. Malas
Hillary Van Tassel
Paul G. Hayeck

SOURCE: CFTC

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