Daily fraud update: 3rd June

Chris Lee
Judge in court hitting mallet down

Judgement reached in case against New York man

A man who stands accused of carrying out foreign exchange fraud has been told he must pay a significant amount in judgement costs.

Eyal Alper, who is from Irvington in New York state, had been pursued by the Commodity Futures Trading Commission (CFTC).

He has been accused of carrying out a fraudulent foreign exchange scheme which scammed individuals for several years.

He supposedly persuaded members of the public to trade foreign exchange contracts – but lied to the traders as he did so.

According to the CFTC, he made “material representations and omissions” when persuading people to join his scheme.

Now, though, he has been hit with consequences after the US District Court for the Southern District of New York granted a permanent injunction against him.

In total, the amount he will need to pay is around $700,000.

In a statement, the CFTC provided more details about the allegations against Alper.

It claimed that he pretended to be a professional trader at a firm in the United Kingdom.

“The order finds that beginning in late 2015 and lasting until October of 2019, Alper fraudulently solicited members of the public to trade futures and foreign currency (forex) contracts through managed accounts”, the CFTC said.

“To solicit customer funds, Alper made material misrepresentations and omissions, including that he was an experienced and successful trader who controlled a large-dollar trading account at a UK-based trading firm.”

The CFTC also alleged that he failed to open up the trading accounts he said he would – and instead used the cash to fund his own lifestyle.

“Additionally, Alper never opened trading accounts for his customers as promised, but instead misappropriated virtually all of the funds provided to him to pay his own personal expenses, including, among other things, international travel, restaurant bills, and car rentals”, it said.

“To conceal his misappropriation, Alper sent false statements to his customers reporting profits in the fictitious accounts and lied to customers about conditions that purportedly prevented him from honoring their withdrawal requests”, the CFTC added.

The sum of approximately $700,000 which he will now have to pay is split into two parts.

There is a restitution figure of $352,901 on the cards, and then an additional civil monetary penalty of the same value.

Alper will also face bans of various sorts, the CFTC added.

“The order also imposes permanent trading and registration bans on Alper and prohibits him from violating provisions of the Commodity Exchange Act and Commission regulations, as charged”, it said.

“The order stems from a CFTC complaint filed on October 24, 2019, which charged Alper with fraud, misappropriation, and engaging in prohibited activities as a commodity trading advisor”, it added.

The CFTC worked alongside an international partner on this case, it said.

It specifically thanked the Financial Conduct Authority, which is based in the UK, for its help.


Chris Lee

Latest news

Kardashian’s $1m Fine Is A Warning To All Influencers
Kim Kardashian agrees to pay a $1. Read more
The Loophole Desperate Investors Are Using To Scramble Out Of FTX
NFT loophole allows FTX investors to reclaim their funds Desperate measures appear to be the only option for beleaguered FTX investors Claims of a $1. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 75 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Plus500 Logo77 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5

    Forex Fraud Certified Brokers

    skilling logo
    ATFX Logo
    Exness Small Logo
    Forex.com Logo
    IQ Option Logo
    LegacyFX Small Logo
    IC Markets Logo
    City Index Logo
    OctaFX Logo
    XM Logo
    HYCM Logo
    AvaTrade logo
    BlackBull Markets Logo