Phillipsburg, New Jersey – In a decisive move, the Commodity Futures Trading Commission (CFTC) has launched legal proceedings against Murtuza Kazmi and his entities, collectively known as “My Forex Funds.” The lawsuit, filed in the U.S. District Court for the District of New Jersey, accuses them of orchestrating a massive fraud scheme involving leveraged forex and retail commodity transactions.
Asset Freeze and Legal Proceedings
On August 29, Judge Robert B. Kugler of the U.S. District Court granted a statutory order to freeze all assets belonging to the defendants. This order allows the CFTC to conduct a thorough inspection of their financial records. A temporary receiver has been appointed to oversee the case pending a preliminary injunction hearing scheduled for September 11 in Trenton, New Jersey, presided over by Judge Zahid N. Quraishi.
CFTC’s Pursuit of Restitution and Enforcement
The CFTC’s primary objective is to secure restitution for defrauded investors and enforce significant civil monetary penalties. Additionally, the agency seeks permanent bans on trading and registration for Kazmi and his entities, aiming to prevent future violations of the Commodity Exchange Act.
Commitment to Market Integrity
Ian McGinley, Director of Enforcement at the CFTC, emphasized the agency’s unwavering commitment to combatting retail fraud. He highlighted the legal violations associated with unregistered leveraged forex transactions and off-exchange commodity contracts, stressing the importance of maintaining market integrity.
Allegations Against “My Forex Funds”
The complaint alleges that “My Forex Funds” misled customers with promises of using company funds to train them as professional traders. However, it was revealed that Traders Global primarily acted as the counterparty to customer trades. The complaint further accuses Traders Global of engaging in deceptive practices such as unfair account terminations, misleading commission charges, manipulation of order prices, and strategies unfairly targeting successful traders.
Since November 2021, more than 135,000 customers have participated in “My Forex Funds” trading programs, contributing over $310 million in fees. The complaint alleges that Kazmi misused these funds to finance an extravagant lifestyle.
International Ramifications
The Ontario Securities Commission in Canada has also taken action against Traders Global Group Inc. and Murtuza Kazmi, issuing a temporary cease trade order to address related concerns.
Recognition of Enforcement Efforts
The CFTC acknowledges the diligent efforts of its Division of Enforcement team, including Ashley J. Burden, Katherine Paulson, Matthew Edelstein, Stacie Pan, Elizabeth M. Streit, Scott Williamson, and Robert Howell, in pursuing this complex case.
Guidance to Customers
In light of these developments, the CFTC has issued Fraud Advisories to help customers identify and avoid potential scams. It encourages the public to verify a company’s registration through the NFA’s BASIC system before engaging in any investment activities. The agency also welcomes tips regarding suspicious activities or potential violations of commodity trading laws, offering incentives for whistleblowers who assist in recovering sanctions.
For ongoing updates and additional information on legal matters related to this case, the public is encouraged to follow announcements and advisories from the CFTC.
