The US Commodity Futures Trading Commission (CFTC) has placed four lawyers and one investigator on administrative leave due to allegations of misconduct in the fraud case against Traders Global Group Inc., a proprietary trading firm known as My Forex Funds, Bloomberg reported, citing “people familiar with the matter”.
“Administrative Leave for Potential Violation”
The regulator also announced that it “has placed staff on administrative leave for potential violations of laws, government ethics requirements and professional rules of conduct,” adding that “investigations are currently ongoing.” However, it did not confirm the number of staff involved or mention My Forex Funds by name.
The agency further told Bloomberg that “a report and recommendation has been filed on the Special Master’s review of allegations that CFTC enforcement attorneys and management engaged in numerous instances of wilful and bad faith misconduct, including making false statements to the court.”
The administrative actions come as Caroline Pham leads the agency as Acting Chair. She took over after US President Donald Trump assumed office for the second time, but Brian Quintenz is set to replace her.
More on My Forex Funds: Prop Firm My Forex Funds and the CFTC Are Probably Negotiating a Settlement
Fall of a Prop Trading Giant
The CFTC initially charged My Forex Funds and its CEO, Murtuza Kazmi, with fraud at the end of August 2023. According to the regulator, the company generated at least $310 million in fees from its proprietary trading business. The platform had more than 135,000 customers between November 2021 and its forced shutdown.
However, the regulatory action—including a temporary restraining order and asset freeze—effectively shut down the business overnight. Following a legal challenge by the defendants’ lawyers, a court unfroze most of Kazmi’s assets.
Interestingly, Pham opposed the agency’s handling of the My Forex Funds case last year and raised concerns over the allegations used to secure the sanctions order, which was proven to be a mischaracterisation of tax payments. She also voiced broader concerns about the CFTC’s internal processes, particularly the actions of the Division of Enforcement.
My Forex Funds even filed a sanctions motion against the CFTC for alleged misrepresentation of facts. According to court filings, the regulator’s lead attorney admitted during an evidentiary hearing that he was “careless and sloppy” during the investigation. The CFTC, however, argued that the evidence presented by the defendants showed the agency’s “mistakes were limited and inadvertent.”
The US Commodity Futures Trading Commission (CFTC) has placed four lawyers and one investigator on administrative leave due to allegations of misconduct in the fraud case against Traders Global Group Inc., a proprietary trading firm known as My Forex Funds, Bloomberg reported, citing “people familiar with the matter”.
“Administrative Leave for Potential Violation”
The regulator also announced that it “has placed staff on administrative leave for potential violations of laws, government ethics requirements and professional rules of conduct,” adding that “investigations are currently ongoing.” However, it did not confirm the number of staff involved or mention My Forex Funds by name.
The agency further told Bloomberg that “a report and recommendation has been filed on the Special Master’s review of allegations that CFTC enforcement attorneys and management engaged in numerous instances of wilful and bad faith misconduct, including making false statements to the court.”
The administrative actions come as Caroline Pham leads the agency as Acting Chair. She took over after US President Donald Trump assumed office for the second time, but Brian Quintenz is set to replace her.
More on My Forex Funds: Prop Firm My Forex Funds and the CFTC Are Probably Negotiating a Settlement
Fall of a Prop Trading Giant
The CFTC initially charged My Forex Funds and its CEO, Murtuza Kazmi, with fraud at the end of August 2023. According to the regulator, the company generated at least $310 million in fees from its proprietary trading business. The platform had more than 135,000 customers between November 2021 and its forced shutdown.
However, the regulatory action—including a temporary restraining order and asset freeze—effectively shut down the business overnight. Following a legal challenge by the defendants’ lawyers, a court unfroze most of Kazmi’s assets.
Interestingly, Pham opposed the agency’s handling of the My Forex Funds case last year and raised concerns over the allegations used to secure the sanctions order, which was proven to be a mischaracterisation of tax payments. She also voiced broader concerns about the CFTC’s internal processes, particularly the actions of the Division of Enforcement.
My Forex Funds even filed a sanctions motion against the CFTC for alleged misrepresentation of facts. According to court filings, the regulator’s lead attorney admitted during an evidentiary hearing that he was “careless and sloppy” during the investigation. The CFTC, however, argued that the evidence presented by the defendants showed the agency’s “mistakes were limited and inadvertent.”
This post is originally published on FINANCEMAGNATES.
