CFTC Initiates Legal Action Against Murtuza Kazmi and “My Forex Funds”
The Commodity Futures Trading Commission (CFTC) has initiated legal proceedings against Murtuza Kazmi of Phillipsburg, New Jersey, and his entities, known collectively as “My Forex Funds.” The U.S. District Court for the District of New Jersey received the legal complaint alleging fraudulent activities in solicitation for leveraged forex and retail commodity transactions.
Asset Freeze and Court Proceedings
On August 29, U.S. District Court Judge Robert B. Kugler approved a statutory order to freeze the defendants’ assets. The order also permits the CFTC to inspect the defendants’ records. A temporary receiver now oversees the case. The preliminary injunction hearing is set for September 11 in Trenton, N.J., with Judge Zahid N. Quraishi.
CFTC’s Commitment to Restitution and Enforcement
The CFTC aims to secure restitution for defrauded investors and enforce civil monetary penalties. The agency seeks to ban the defendants permanently from trading and registration and to prevent them from violating the Commodity Exchange Act in the future.
Enforcement Director’s Statement on Market Integrity
Ian McGinley, CFTC’s Director of Enforcement, stressed the agency’s commitment to eliminating retail fraud. He noted that unregistered leveraged forex transactions and off-exchange commodity contracts are clear legal violations.
Allegations Against My Forex Funds
The complaint asserts that “My Forex Funds” falsely promised customers the opportunity to become professional traders using company funds. However, Traders Global, not a third-party, mainly acted as the counterparty to most customer trades. The complaint accuses Traders Global of undermining profitable trading through unfair account terminations, deceptive commission charges, software manipulation of order prices, and strategies that disproportionately affected successful traders.
Since November 2021, over 135,000 customers have joined the trading program, contributing more than $310 million in fees. The complaint claims Kazmi used these funds to support a lavish lifestyle.
International Actions
The Ontario Securities Commission in Canada has also taken action against Traders Global Group Inc. and Murtuza Kazmi, issuing a temporary cease trade order.
CFTC’s Division of Enforcement Team Acknowledgment
The efforts of CFTC’s Division of Enforcement team, including Ashley J. Burden, Katherine Paulson, Matthew Edelstein, Stacie Pan, Elizabeth M. Streit, Scott Williamson, and Robert Howell, are recognized for their dedication to this case.
CFTC’s Advice to Customers
The CFTC has released Fraud Advisories to help customers identify and avoid scams. It encourages public verification of a company’s registration via the NFA’s BASIC system before investing. The agency welcomes tips on suspicious activities or potential commodity trading law violations. Whistleblowers could receive monetary rewards from collected sanctions.
For more information and updates on legal matters, the public is encouraged to follow the CFTC’s announcements and advisories.
