CFTC Sues A New York Citizen for Fraudulent Forex Scheme

The US Commodity Futures Trading Commission (CFTC) has launched a civil enforcement action against a New York citizen, the regulator confirmed on May 13.

Eddy Alexandre, suspected of being involved in a $59 million FX fraud scheme, owns EminiFX Inc., a company that the US regulator has already taken similar action against. Alexandre promised investors a 5% weekly return and collected at least $59 million from hundreds of people to trade forex and crypto-assets, according to the CFTC.

Alexandre only used 9% of his customers' money to trade forex and cryptocurrencies. Through unprofitable trading and fees, he lost $6.2 million, or almost 70% of the total. Alexandre also embezzled client money for personal expenses.

"For example, Alexandre used participant funds to make payments to BMW, Mercedes Benz, and Saks Fifth Avenue. Payments were also made for flights, luxury hotels, clothing, and occupational and physical therapy. Alexandre also used substantial participant funds to rent and furnish office space for EminiFX and to host 'galas' on behalf of EminiFX," CFTC noted.