Release: 4921-04
For Release: May 3, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES MARYLAND MAN AND HIS COMPANY WITH DEFRAUDING CUSTOMERS IN FOREX SCAM

Arthur John Keeffe, II and Calvary Currencies LLC Allegedly Fraudulently Solicited Over $400,000 from Investors to Trade Illegal, Off-Exchange Foreign Currency Futures Contracts

WASHINGTON, D.C.—The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a two-count complaint in the U.S. District Court for the District of Maryland charging that Calvary Currencies LLC, a/k/a Calvary Currency (Calvary) of Rockville, Maryland, and its sole member, Arthur John Keeffe, II, of Bethesda, Maryland, fraudulently induced customers to invest in illegal, retail, off-exchange foreign currency (forex) futures contracts.

The CFTC complaint alleges that, from at least January 2001 to at least August 2002, the defendants fraudulently solicited customers to invest more than $400,000 to trade forex contracts by misrepresenting the likelihood of profit as well as the firm’s trading success, including representing to customers and potential customers that Calvary had “extraordinary” success trading forex futures when, in fact, all of Calvary’s customers lost all the funds they committed to forex trading with the defendants.

In addition, the complaint alleges that the defendants failed to adequately disclose the risks of trading forex futures, including representing to at least one customer that there was “no risk, if you know what you are doing.”

Finally, the complaint alleges that Calvary was not registered with the CFTC and, therefore, improperly accepted customer funds.

The CFTC complaint seeks a return of funds to defrauded customers and a civil monetary penalty, among other sanctions.

The following CFTC Division of Enforcement staff members are responsible for this case: Elizabeth Padgett, Jan Folena, and Richard Glaser.

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Media Contacts
Alan Sobba
(202) 418-5080
Dennis Holden
(202) 418-5088
Office of External Affairs

Staff Contacts
Richard Glaser
Associate Director
CFTC Division of Enforcement
(202) 418-5358

Related Document
Complaint