Release: 5001-04
For Release: October 4, 2004

CFTC CHARGES NEW YORK FIRM FIRST LIBERTY GROUP AND ITS PRESIDENT, MAURICIO DA SILVA, WITH STEALING MILLIONS IN FOREIGN CURRENCY SCAM

US District Court Judge Freezes Defendants' Assets and Prohibits Defendants From Destroying Documents

Washington, D.C. -- The United States Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint in a New York federal court against defendants First Liberty Group (FLG), located in New York, and its President, Mauricio Da Silva of New Jersey and Florida.

The CFTC complaint charges the defendants with solicitation fraud in the sale of foreign currency (forex) futures contracts to retail customers and with stealing customer funds, all in violation of the Commodity Exchange Act (CEA). At the CFTC’s request, the Honorable Robert W. Sweet of the United States District Court for the Southern District of New York issued an order freezing the assets of the defendants and prohibiting the destruction of documents.

Specifically, the CFTC complaint alleges that the defendants defrauded the retail public by fraudulently soliciting, misappropriating, and misusing millions of dollars of customer money that they represented would be used for speculative trading in foreign currency contracts that the CFTC alleges were futures contracts.

According to the complaint, instead of trading the customer money as promised, defendants spent it on themselves, funneling much of the funds overseas to entities in Israel and The Netherlands and then closing down FLG without giving any notice to their customers. The CFTC also charged that the foreign currency contracts sold by the defendants were illegal futures contracts.

In the ongoing litigation, the CFTC is seeking a permanent injunction against each defendant, prohibiting them from further violating the CEA and seeking reimbursement of stolen funds to defrauded customers, repayment of all ill-gotten gains from the defendants, and the imposition of monetary penalties.

The following Division of Enforcement staff members are responsible for this case: Elizabeth C. Brennan, Christina Kang, Sheila Marhamati, Linda Peng, Philip Rix, Steven Ringer, Lenel Hickson, Jr., Stephen J. Obie, and Richard Wagner.

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

Staff Contact
Stephen Obie
Regional Counsel & Associate Director
CFTC Division of Enforcement
(646) 746-9766

Related Documents
Complaint (04 CV 7609)
SRO (Statutory Restraining Order)