CFTC claims hedge funds involved in forex fraud
The US Commodity Futures Trading Commission has charged two New York hedge funds with defrauding investors by claiming non-existent foreign exchange futures trades.
The CFTC's injunction claims Efrosman attracted $5.2 million worth of investment to the two funds, then supplied customers with fake account statements showing non-existent forex trades and profits. Meanwhile, the CFTC says, he misappropriated his customers' funds. In addition, neither fund was CFTC registered, making it illegal for either to trade in any case.
The commission is calling for the funds to be frozen and used to compensate the fraud's victims. Efrosman, meanwhile, has vanished again; he was last seen leaving Key West, Florida, for a Caribbean cruise on June 2, 2005.
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