The CFTC obtained a Consent Order ("Order") against a New Zealand forex broker and two of its agents for soliciting and accepting at least $50 million from approximately 1,850 customers worldwide and in the United States for off-exchange retail forex trading without being registered with the CFTC. The Order requires them to pay, jointly and severally, $35 million in restitution to defrauded customers and a $420,000 civil monetary penalty.
The Order was entered by Judge Lee Yeakel of the U.S. District Court for the Western District of Texas. The Order permanently: (i) prohibits the agents from further CEA violations; and (ii) bans the agents from trading and registration. The Consent Order is the result of a CFTC enforcement action filed against the forex broker on November 9, 2015.
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