Release: 4816-03
For Release: July 10, 2003
FEDERAL COURT ORDERS NEW YORK FOREIGN CURRENCY FIRM TO PAY OVER $100 MILLION IN U.S. COMMODITY FUTURES TRADING COMMISSION ANTI-FRAUD ACTION
International Financial Services (New York) Inc. Ordered to Pay Civil Penalties and Repay Customers
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that a New York Federal District Court entered an order of default judgment in the CFTC’s favor requiring defendant International Financial Services (New York) Inc. (IFS) to repay defrauded investors, and also to give up ill-gotten gains and pay a civil monetary penalty, resulting from its violations of federal commodity laws. The court’s order also requires that IFS cease and desist from further fraudulent conduct and permanently restricts it from trading commodity futures or foreign currency (forex) contracts.
The court’s order stems from a complaint filed by the CFTC against IFS and several other defendants in the United States District Court in the Southern District of New York (see CFTC News Release 4675-02, July 22, 2002). The complaint alleged that the defendants fraudulently solicited and obtained millions of dollars from customers who were duped into investing with IFS based on false misrepresentations.
Specifically, the court ordered IFS to:
“These fraudulent forex firms are like cockroaches that need to be exterminated. Part of the Division of Enforcement’s mission is to eliminate them,” said Gregory Mocek, the CFTC’s Director of Enforcement.
The following CFTC Division of Enforcement staff were responsible for this case: Judith Slowly, Eliud Ramirez, Jr., Christina Kang, Linda Peng, Steven Ringer, Beth Morgenstern, Lenel Hickson, Stephen J. Obie, and Vincent McGonagle.
Media Enforcement Contact:
Stephen J. Obie, Regional Counsel and Associate Director
CFTC Division of Enforcement, New York, 646-746-9766