The news article from the CoinWorld website reports:
Caroline D.Pham, Commissioner of the Commodity Futures Trading Commission (CFTC), issued a statement calling for immediate action to address the alleged misconduct by CFTC staff in the enforcement case against the operator of the proprietary trading company My Forex Funds (MFF), Traders Global Group Corporation.
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CFTC Commissioner urges action on alleged misconduct in My Forex Funds case
In a statement released this week, Commissioner Pham expressed serious concerns over the allegations in the 11th sanction motion filed by CFTC in the case against Traders Global Group. The motion reportedly accuses CFTC staff of making false statements to the court over a six-month period.
Pham stated, “This is a serious matter, and our commission will rigorously review how we handle the so-called CFTC misconduct.” “Law enforcement agencies cannot tolerate such behavior.”
For My Forex Funds, this may be a turning point in the case that has been ongoing since last September, as the proprietary trading company has consistently argued that the Commission may have misunderstood certain transactions involving them.
Moreover, in November, MFF kept a distance from the Commission’s allegations and questioned CFTC’s jurisdiction over its operations. The motion argued that the transactions between MFF and its clients are outside the regulatory scope.
In early March, Finance Magnates reported that the company’s representatives would seek sanctions against CFTC due to alleged distortion of facts. The company cited similar “serious abuses of power” as mentioned by the U.S. Securities and Exchange Commission in the DEBT Box case, emphasizing the misrepresented facts and “malicious conduct by CFTC’s staff.”
A motion filed in a New Jersey court stated: “Recognizing that sanctions are an exceptional remedy, it is necessary to condemn and rectify CFTC’s severe abuses of unilateral procedures and its power as a government enforcement agency.”
The motion seeks an “evidentiary hearing so that the pattern of misconduct by CFTC and its impact on the defendant’s rights can be fully understood and corrected.”
Pham’s charges against CFTC in the My Forex Funds case
Pham outlined several recommendations to address the issue:
Reassign the case to CFTC enforcement personnel from different regional offices or headquarters. Have the General Counsel’s Office of the Commodity Futures Trading Commission or the U.S. Department of Justice handle the 11th sanction motion, rather than by the enforcement department.
The commissioner expressed shock that these measures had not been taken yet and pointed out that it took the commission six months to receive a warning from the court about the Commodity Futures Trading Commission. The Commodity Exchange Act (CEA) of 1974 established the Commodity Futures Trading Commission (CFTC). The commission protects and regulates market activities, prevents manipulation, fraud, and abusive trading practices, and promotes fairness in futures contracts. The CEA also includes the Shad-Johnson Accord, which specifies the powers and responsibilities for supervising financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. In 1974, the Commodity Exchange Act established the Commodity Futures Trading Commission. The commission protects and regulates market activities, prevents manipulation, fraud, and abusive trading practices, and promotes fairness in futures contracts. The CEA also includes the Shad-Johnson Accord, which specifies the powers and responsibilities for supervising financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
CFTC/Traders Global Group (MyForexFunds) 2 public statements and Remarks https://t.co/hesi6o18Wq https://t.co/CB1bSibwlG pic.twitter.com/HLUc8Pj7Fp — Fund Traders (@FundTraders) July 3, 2024
Pham also raised broader concerns about CFTC’s internal procedures, stating that she had previously discovered that the enforcement department “omitted evidence and legal arguments in its recommendations regarding enforcement actions, being less than candid with the commission.”
Pham claimed, “Withholding the truth from the commission is unacceptable, especially when rubber-stamping approvals lead the public into settlements that deprive Americans of constitutional rights and property.”
The Commissioner called for a cultural reform within CFTC to enhance transparency, stating that “sunlight is the best disinfectant.”
In conclusion, it begs the question, if it weren’t for the regulatory crackdown on My Forex Funds by market oversight agencies, would we have witnessed the subsequent issues faced by the entire retail props trading industry in February?