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smarties
post Jan 28, 2011, 12:39 AM
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post Jan 28, 2011, 12:39 AM
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RELEASE: PR5974-11

January 26, 2011


CFTC SUES 14 FOREIGN CURRENCY FIRMS IN NATIONWIDE SWEEP

Action represents first use of new authority under the 2008 Farm Bill and Dodd-Frank Act to regulate foreign exchange dealers.

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it simultaneously filed 13 enforcement actions in Federal District Courts in Chicago, the District of Columbia, Kansas City and New York, alleging that 14 entities are illegally soliciting members of the public to engage in foreign currency (forex) transactions and that they are operating without being registered with the CFTC.

Today’s actions are the first taken by the CFTC to enforce new forex regulations that became effective in October 2010. These new regulations require entities that wish to participate in the forex market to register with the CFTC and abide by regulations intended to protect the public. These regulations require that forex dealers take steps to protect investors, including maintaining capital and records, which will reduce risk and increase transparency.

The following companies were sued by the CFTC as part of this sweep:

EuroForex Development LLC, a Delaware LLC;

FIG Solutions Limited, Inc., a Delaware corporation;

ForInvest, a Delaware corporation;

[Illegal Advertising] Investments Inc., a Delaware LLC;

FXPRICE, a Delaware LLC;

GIGFX, L.L.C., a Delaware company;

InovaTrade, Inc., a company with purported offices in Florida;

InstaTrade Corporation d/b/a InstaForex, a British Virgin Islands company;

InvesttechFX Technologies, Inc., a Canadian corporation located in Toronto;

J&K Futures, Inc., a company with purported offices in California and New York;

Kingdom Forex Trading and Futures, Ltd., a Nevada company;

Prime Forex, LLC, a Delaware LLC;

Wall Street Brokers, LLC, a Delaware LLC; and

ZtradeFX LLC, a Connecticut LLC.

In the forex market, entities known as Retail Foreign Exchange Dealers (RFED) or Futures Commission Merchants (FCM) may buy foreign currency contracts from or sell foreign currency contracts to individual investors. Under the Commodity Exchange Act (CEA) and CFTC Regulations, an entity acting as an RFED or FCM must register with the Commission and abide by rules and regulations designed for investor protection, including those relating to minimum capital requirements, recordkeeping and compliance. Further, with a few exceptions, such an entity also must be registered with the Commission if it solicits or accepts orders from US investors in connection with forex transactions conducted at an RFED or FCM.

In all but two of the complaints, the CFTC alleges that a defendant acted as an RFED; that is, it offered to take or took the opposite side of a customer’s forex transaction without being registered. In the remaining two complaints, ZtradeFX LLC and FXPRICE, the CFTC alleges that the defendant solicited customers to place forex trades at an RFED without being registered as an Introducing Broker. In every complaint, the CFTC alleges that the defendant solicited or accepted orders from US investors to enter into forex transactions in violation of the Act. The CFTC has moved for preliminary injunctions preventing these defendants from operating unless and until they comply with the CEA and Commission Regulations. The CFTC’s complaints also seek civil monetary penalties, trading and registration bans, disgorgement and rescission.

The CFTC strongly urges the public to check whether a company is registered before investing funds. If a company is not registered, an investor should be wary of providing funds to that company.

A company’s registration status can be found at: BASIC Search

The CFTC also strongly urges members of the public to visit the below websites before investing money in the forex market:

CFTC Consumer Advisory: Forex Fraud: If it sounds too good to be true, it probably is!

CFTC Consumer Advisory: Foreign Currency "Forex" Fraud

Fraud Advisory from the CFTC: Foreign Currency Trading (Forex) Fraud

CFTC Fraud Advisories - CFTC

Foreign Exchange Currency Fraud: CFTC/NASAA Investor Alert

Foreign Currency Trading - CFTC

The CFTC Division of Enforcement staff members responsible for these cases are: Margaret Aisenbrey, Kathleen Banar, Barry Blankfield, Kim Bruno, Jennifer Chapin, Elizabeth Davis, James Deacon, Jennifer Diamantis, Rick Glaser, Patricia Gomersall, Amanda Harding, Jessica Harris, Paul Hayeck, Lenel Hickson, Rosemary Hollinger, William Janulis, Joseph Konizeski, Jeffrey Le Riche, Charles Marvine, Judith McCorkle, Joy McCormack, Vincent McGonagle, Kenneth McCracken, Stephen Obie, Nathan Ploener, Eliud Ramirez, Stephanie Reinhart, Xavier Romeu-Matta, Christine Ryall, Veronica Spicer, Elizabeth Streit, Manal Sultan, Lara Turcik, Stephen Turley, Richard Wagner and Scott Williamson.

The CFTC thanks the National Futures Association for its assistance in this matter.

________________________________________________________________________________
__________________________________________________________________

Click Here Visit CFTC Website Now
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IFX Yana
post Jan 28, 2011, 11:53 AM
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post Jan 28, 2011, 11:53 AM
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I want to correct you, not InstaForex was sued by the CFTC, but the former participant of our affiliate programme - Ztradefx. We confirm that Ztradefx engaged itself in InstaForex partnership program. These people were automatically registered on our website, hence they bear no other direct relation to InstaForex including absence of any signed agreements, contracts, etc. We regret that the aforementioned company (and only that signle company as Instaforex has never had any offices in the USA) got in trouble with the CFTC, but we consider this irrational to accuse the company in sins which belong to the participant of its partnership program.

If any member of InstaForex partnership program steals a car it does not mean that a company stole a car.

If any member of InstaForex partnership program meets with an accident it does not imply that a company met with an accident.

If any member of InstaForex partnership program was claimed against it cannot mean that the company was accused.

Our company does not have a representation office in the USA and does not plan to have it in foreseeable future. However, we confirm that any US citizen as any other person in the world can visit InstaForex website – it is the structure of the Internet. In this situation we only see the necessity of adding the warning for the US citizens of not being able to use our website. We need some time in order to find a due place for this notification.

This is the policy of the US government – they protect their market against the foreign investments. We may not comment on this policy but we will reply to it by posting notification on our website.

This participant of InstaForex partnership program WAS NOT active and it had no clients. We are certain that THE CLAIM IS ABSOLUTELY UNFOUNDED. We respect the CFTC’s decisions but we have to emphasize its groundless in this particular case: this member of the participant program was not even active. It has had only 3 clients during the whole period of participation in the partnership program and some of its clients were not even the US citizens.



Regards, official representative Yana Krupko

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offshore
post Jan 28, 2011, 10:47 PM
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post Jan 28, 2011, 10:47 PM
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So, will Russian Government hand your companies directors over?

Will The British Virgin Islands revoke your companies registration?

I'm curious to watch from the bleachers

See attached

http://cftc.gov/ucm/groups/public/@lrenfor...laint012611.pdf


QUOTE (IFX Yana @ Jan 28 2011, 11:53 AM) *
I want to correct you, not InstaForex was sued by the CFTC, but the former participant of our affiliate programme - Ztradefx. We confirm that Ztradefx engaged itself in InstaForex partnership program. These people were automatically registered on our website, hence they bear no other direct relation to InstaForex including absence of any signed agreements, contracts, etc. We regret that the aforementioned company (and only that signle company as Instaforex has never had any offices in the USA) got in trouble with the CFTC, but we consider this irrational to accuse the company in sins which belong to the participant of its partnership program.

If any member of InstaForex partnership program steals a car it does not mean that a company stole a car.

If any member of InstaForex partnership program meets with an accident it does not imply that a company met with an accident.

If any member of InstaForex partnership program was claimed against it cannot mean that the company was accused.

Our company does not have a representation office in the USA and does not plan to have it in foreseeable future. However, we confirm that any US citizen as any other person in the world can visit InstaForex website – it is the structure of the Internet. In this situation we only see the necessity of adding the warning for the US citizens of not being able to use our website. We need some time in order to find a due place for this notification.

This is the policy of the US government – they protect their market against the foreign investments. We may not comment on this policy but we will reply to it by posting notification on our website.

This participant of InstaForex partnership program WAS NOT active and it had no clients. We are certain that THE CLAIM IS ABSOLUTELY UNFOUNDED. We respect the CFTC’s decisions but we have to emphasize its groundless in this particular case: this member of the participant program was not even active. It has had only 3 clients during the whole period of participation in the partnership program and some of its clients were not even the US citizens.
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ElectricSavant
post Jan 29, 2011, 07:05 PM
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post Jan 29, 2011, 07:05 PM
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This looks pretty serious as the CFTC is asking for relief by banning InstaForex from trading in Futures. This is an important Trading Desk operation for Instaforex and companies involved with them....

Perhaps Instaforex in Russia will not be able to operate with the constraints of not being able to do business with or in the USA indirectly or directly...

ES

P.S. For us residents of the USA it is a loss as the long arm of our government reaches across the world in tricky ways just so they can collect taxes...this is really what it is all about.

P.P.S. No matter how the companies are named and how the structure is...IB's and such...active or inactive is not really an issue...

P.P.P.S. Now I know why the Russian processing department within the credit card processing unit of InstaForex lied and told me that my deposit was denied by Chase and gave the false reason that Chase bank told them that it was denied...
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IFX Katerine
post Feb 5, 2011, 04:22 PM
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post Feb 5, 2011, 04:22 PM
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QUOTE (offshore @ Jan 28 2011, 11:47 PM) *
So, will Russian Government hand your companies directors over?

Will The British Virgin Islands revoke your companies registration?

The lawsuit was lodged by the US regulator, because they think we broke their law by operating through Ztradefx. In fact InstaForex has never had offices and representation in the USA. The finding of the US court is only within the US territory, however it's ivalid in other countries. So these problems are not serious for us. And our clients can be shouldn't worry at all. And of course, no actions by the Russian goverment, because our activity is absolutely legal.



Regards, official representative


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IFX Katerine
post Feb 5, 2011, 04:25 PM
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post Feb 5, 2011, 04:25 PM
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QUOTE (ElectricSavant @ Jan 29 2011, 08:05 PM) *
This looks pretty serious as the CFTC is asking for relief by banning InstaForex from trading in Futures. This is an important Trading Desk operation for Instaforex and companies involved with them....

Perhaps Instaforex in Russia will not be able to operate with the constraints of not being able to do business with or in the USA indirectly or directly...

ES

P.S. For us residents of the USA it is a loss as the long arm of our government reaches across the world in tricky ways just so they can collect taxes...this is really what it is all about.

P.P.S. No matter how the companies are named and how the structure is...IB's and such...active or inactive is not really an issue...

P.P.P.S. Now I know why the Russian processing department within the credit card processing unit of InstaForex lied and told me that my deposit was denied by Chase and gave the false reason that Chase bank told them that it was denied...

Actually, we have never had plans to operate in the US market. So we don't lose anything in this case.



Regards, official representative


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Crossfitter
post Feb 21, 2011, 05:27 AM
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post Feb 21, 2011, 05:27 AM
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Seems pretty serious but i think Instaforex will stay, standing strong smile.gif









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IFX Yana
post Apr 23, 2011, 02:20 PM
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post Apr 23, 2011, 02:20 PM
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QUOTE (Crossfitter @ Feb 21 2011, 06:27 AM) *
Seems pretty serious but i think Instaforex will stay, standing strong smile.gif


Thank you, we will. smile.gif






Regards, official representative Yana Krupko

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