CFTC charges N.Y. broker with falsifying bank accounts

September 27, 2012 04:13 PM
Allegedly didn't meet financial requirements

The following is from the CFTC...

The U.S. Commodity Futures Trading Commission (CFTC) today filed a civil enforcement action against registered independent introducing broker iFinix Futures, Inc. (iFinix), based in Plainview, N.Y., and iFinix’s senior executive officer, Benhope Marlon Munroe of New Milford, Conn. iFinix has also done business under the name Pro-Active Futures.

The CFTC complaint, filed in the U.S. District Court for the Eastern District of New York, charges the defendants with making false statements to, and concealing material facts from, the National Futures Association (NFA), the futures industry self-regulatory organization which is registered as a futures association with the CFTC. The complaint also charges defendants with failing to meet minimum financial requirements for an independent introducing broker.

Specifically, the complaint alleges that, in and around July 2011, during an audit by the NFA, Munroe, while acting on behalf of iFinix, willfully made false statements and provided falsified bank documents to the NFA to conceal iFinix’s failure to maintain adequate capital. According to the complaint, the defendants falsely represented that iFinix had $60,000 in available cash and provided bank account documents that had been altered to conceal the fact that iFinix did not have such cash.

In addition, the complaint alleges that iFinix, with Munroe as its controlling person, failed to maintain adequate capital, failed to maintain required records, and failed to cease doing business as an independent introducing broker and provide notice to the NFA, futures commission merchants, and customers as soon as it knew or should have known that it had inadequate capital.

In its continuing litigation, the CFTC seeks civil monetary penalties, a return of ill-gotten gains, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws charged.

The CFTC thanks the NFA for its cooperation and assistance.

CFTC Division of Enforcement staff members responsible for this case are Douglas K. Yatter, Lara Turcik, Christopher Giglio, Manal M. Sultan, Lenel Hickson, Jr., Stephen J. Obie, and Vincent A. McGonagle.

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