Release: 4938-04
For Release: June 14, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES PANAMANIAN CORPORATION WITH SALE OF ILLEGAL OFF-EXCHANGE FOREIGN CURRENCY FUTURES CONTRACTS TO CUSTOMERS

CFTC Alleges that Axess Trade Co., Inc. Illegally Solicits Customers Through the Internet to Trade Foreign Currency Futures Contracts

WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of an injunctive complaint in the United States District Court for the Southern District of New York against Axess Trade Co., Inc. (Axess Trade), a Panamanian corporation with offices in New York, New York. The complaint charges that the defendant violated the Commodity Exchange Act by engaging in the offer and sale of illegal, off-exchange commodity futures contracts to retail customers, and by misrepresenting its regulatory status to prospective customers.

Specifically, the complaint alleges that since at least September 2003, Axess Trade solicited a total of over $134,000 from at least 12 customers through personal solicitations, emails, and its website at www.axesstrade.com, to trade illegal, off-exchange futures contracts. The complaint also alleges Axess Trade falsely implies in its solicitations and customer account documents that it is regulated by the CFTC and the National Futures Association (NFA), a futures industry self-regulatory organization, and therefore is subject to the full regulatory powers of the CFTC and NFA. Axess Trade has never been registered with the CFTC in any capacity, nor is it a member of the NFA.

U.S. Federal Judge Enters Preliminary Order to Freeze Assets and Bar Destruction of Books and Records

On June 7, 2004, the Honorable Kimba Wood of the U.S. District Court for the Southern District of New York entered a statutory restraining order against the Axess Trade, freezing its assets, and preventing the destruction or alteration of its books and records.

The CFTC is seeking a permanent injunction against Axess Trade, repayment to defrauded customers, the return of all ill-gotten gains, and monetary penalties for each violation of the Commodity Exchange Act.

The following CFTC Division of Enforcement staff members are responsible for this case: Lawrence Green, Karen Kenmotsu, Lenora Kay Majors-Guy, and Gretchen L. Lowe.

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

Staff Contact
Karen Kenmotsu
Chief Trial Attorney
CFTC Division of Enforcement
(202) 418-5383

Related Documents
Complaint
Restraining Order