RECOMMENDED FOREX BROKERS
Do not invest more money than you can afford to lose.
The US Commodity Futures Trading Commission (CFTC) said on Thursday it has filed with the US District Court for the Southern District of New York a civil enforcement action against All City Investments LLC and its principal Jamal Y. Vance in relation to an off-exchange forex contracts fraud. The company and its controlling person have also been charged with failure to register as a Commodity Trading Advisors (CTAs) with the regulator as is required by law.
According to the notice, Vance has, through his company, solicited investors into opening and depositing funds into accounts with an online forex brokerage and signing a limited power of attorney form, which designated his company as that customer’s agent and attorney-in-fact for the purpose of buying and selling margined forex transactions for the customer’s account.
Moreover, in order to induce customers into having All City Investments as their CTA, the company presented fake graphs with historic performance. The graphs falsely and/or misleadingly indicated that from December 2013 through September 2015 the company generated a “2,675.10% growth” and performed 444 trades, of which 442, or 99.55%, were profitable and just two, or 0.45% closed at a loss.
“In its continuing litigation against Defendants, the CFTC seeks disgorgement of ill-gotten gains, full restitution to defrauded customers, civil monetary penalties, trading and registration bans, and a permanent injunction prohibiting the Defendants from committing future violations of the federal commodities laws, as charged,” the CFTC said in the notice.
As already mentioned, the CFTC has charged both All City Investments and Vance with acting as CTAs without registering as such with the regulator. The US regulatory framework requires companies offering investment services to be registered and to comply with the requirements.
As a president, secretary, member and controlling person of All City Investments, Vance is liable for all of the company’s violations. On the other hand, the company is also liable for Vance’s violations because he was acting for the company within the scope of his employment or office when he committed his violations, the US regulator said.
We strongly advise you to be cautious regarding your investments and to only choose brokers and investment companies that are regulated by reputable financial watchdogs, such as the CFTC, CySEC, FINMA, FCA, etc.