My Forex Funds Statutory Restraining Order Application

My Forex Funds has filed a motion accusing the Commodity Futures Trading Commission (CFTC) of knowingly including false information in the initial ex parte application for a statutory restraining order (STO). The motion, filed on Tuesday, emphasizes that the court should condemn and deter such conduct by a government agency. Legal representatives for the defendants, led by Rob Zink and Avi Perry of Quinn Emanuel Urquhart & Sullivan, LLP, are urging the court to send a strong message. They are seeking half the cost of the receivership from the CFTC. According to the defendant’s lawyer, the CFTC should bear half of the cost incurred for receivership as they obtained the STO through false statements. The CFTC had initially charged My Forex Funds and its CEO with fraud on August 28. They obtained a court order to freeze the company’s and the individual’s assets. Allegations included the illegal transfer of funds to the CEO’s personal accounts.
My Forex Funds Restraining Order

My Forex Funds Statutory Restraining Order Application

However, the defendant’s lawyers challenged the CFTC’s findings in late September. They said that the agency “recklessly mischaracterized transfers” involving CA$31.5 million, which My Forex Funds says were transferred to the Canadian tax authorities. In a subsequent court order, the judge accepted evidence provided by the prop trading firm. This leads to the unfreezing of a portion of the assets. Nevertheless, the court upheld primary fraud evidence against My Forex Funds and its CEO on a Prima Facie basis. The court rejected a previous attempt by My Forex Funds to have the fraud charges dropped. The latest motion by the defendants highlights an email exhibit attached by the CFTC. On August 17, before the initial lawsuit was filed, a Canadian regulatory representative confirmed that the CA$31.5 million was indeed paid to the tax authorities. My Forex Funds expressed concern that the CFTC, in its recent filing, acknowledged that its investigator was aware of the mischaracterization before the initial complaint and STO application. The defendant’s motion emphasized that the CFTC knowingly submitted a false declaration to the court in support of freezing all assets and imposing a costly receivership on the defendants. Ashley Burden, the Senior Trial Attorney of the CFTC handling the lawsuit against the prop trading firm, received the email from Canadian authorities, as highlighted in the defendant’s motion. Lastly, the unfolding legal battle raises questions about the integrity of the CFTC’s actions and the potential consequences of knowingly including false information in legal applications. Also, stay updated with the Latest Prop News!
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