Enforcement: USA's CFTC revokes licences

The CFTC says that is has revoked the registrations of M25 Investments, Inc. (M25) and M37 Investments, LLC (M37), of Waxahachie, Texas, as registered Commodity Trading Advisers. The Initial Decision, issued on 4 May, 2011 by a CFTC Administrative Law Judge (ALJ), resolves CFTC statutory disqualification proceedings brought against M25 and M37 on 23 February, 2011.

In the Initial Decision, the ALJ entered a default judgment against M25 and M37 and found that M25 and M37 were unfit for registration based upon the entry of an order for permanent injunction, other equitable relief, and for civil penalties on 25 October, 2010 in the U. S. District Court for the Northern District of Texas .

The federal district court’s order of 25 October, 2010 order found that, from December 2007 to September 2009, the defendants and their representatives fraudulently solicited individuals, often targeting elderly persons through their churches, in West Virginia, Texas, Mississippi, Maryland and other states to trade forex and forex options.

The order prohibits M25 and M37 from breaching the Commodity Exchange Act as charged and from seeking registration with the CFTC in any capacity, among other sanctions. The district court also ordered M25 and M37, among other defendants, to jointly and severally pay restitution to defrauded customers of USD7,404,036.56 and required M25 and M37 to jointly and severally pay a USD7.1 million civil monetary penalty.