Daily fraud update: 3rd October

Chris Lee

Charges settled in BGC Financial forex case

An American firm called BGC Financial, which was accused of perpetrating foreign exchange fraud has had a large penalty applied to it.

Another firm, GFI Securities, has also been given a fine.

The firms were hit by the accusations after claims that their foreign exchange options traders had lied to potential investors.

Those on the forex desks at the firm allegedly told investors that it was possible for the relevant bids to be executed, and that these had gone ahead.

However, this was not always the case – leading to accusations of false representation.

As part of the settlements from the Commodity Futures Trading Commission (CFTC), BGC Financial will need to pay $15m in penalties.

GFI will need to shell out $10m as a result of the accusations.

They have also been given “cease and desist” orders to stop breaking the CFTC’s regulations and the Commodity Exchange Act.

In particular, the firms are accused of presenting false traders to their clients.

They are believed to have operated a sophisticated system in which clients would see bids appear and disappear on their own screens in an apparent attempt to create a situation in which the clients were misled.

In a statement, the director of enforcement at the CFTC, James McDonald, reiterated the organisation’s commitment to “protecting the integrity” of these markets.

“Brokers and other intermediaries play a critical role in our markets. The CFTC is committed to protecting the integrity of our markets by ensuring they are held accountable for fraudulent misconduct”, he said.

However, this is far from the only case involving these two firms.

A distinct process against the two firms, this time led by the attorney general of New York, will see both firms pay out another $12.5m on top of the penalties they have been hit with elsewhere.

This comes from violations they are accused of making over the Martin Act, a separate law.

Forex trader accused of rigging set to sue Citigroup

A foreign exchange trader who formerly worked at Citigroup and who was accused of large scale fraud has announced he will sue the bank.

Rohan Ramchandani, who used to be the Europe-wide lead for the American corporation’s foreign exchange spot markets, accuses Citigroup of lying about him during an investigation into his conduct.

Ramchandani was accused of setting benchmark exchange rates in a way that was beneficial to them and unfair to the markets, alongside two others.

He was subsequently found not guilty.

The lawsuit has been filed in New York City.

According to an excerpt from the complaint published in the UK press, Ramchandani was the victim of “fabricated” information.

“Ultimately, Citi quite literally fabricated an antitrust case for the United States Department of Justice against Ramchandani based upon knowingly false allegations that he engaged in market ‘manipulation’ and ‘collusion’”, the complaint said.

However, Citigroup has responded robustly to the claims.

“Ramchandani’s claims of malicious prosecution are without merit and we will contest them vigorously”, a spokesperson said.


Chris Lee

Latest news

Cybercrime still on the rise – be wary of potential scams
While our attention may be drawn to the latest news regarding the COVID-19 pandemic or the Tokyo Olympic Games, cybercrime statistics continue to grow unabated in the shadows. Read more
How to Learn to Trade Unpredictable Summer Markets
Recent events in the financial markets have left traders and investors dazed and confused. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
4.9
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#5 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    Pepperstone
    OctaFX Logo
    FXTM Logo
    BlackBull Markets Logo
    LegacyFX Small Logo
    skilling logo
    XM Logo
    Exness Small Logo
    ATFX Logo
    Plus500 Small Logo
    Vantage FX logo
    Forex.com Logo
    HYCM Logo
    AvaTrade logo
    IQ Option Logo
    IC Markets Logo