US Regulators Move against $15.7M Forex Trading Scheme

The Commodity Futures Trading Commission CFTC has continued its bust of fraudulent schemes.

 





On Wednesday, the agency filed a civil enforcement action against Kay Yang and her two companies, AK Equity Group LLC and Xapphire LLC, for foreign exchange forex fraud.

Yang and her two companies have been charged with fraud and misappropriation related to the  forex trading  Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $ billion turnover every single day, with the market being open hours a day, days a week.It goes without saying that forex trading is a very attractive market for not only banks and hedge funds, but even for the small individual trader, due to the low barriers for entry. One literally only needs a computer with an internet connection, and some money deposited with a forex broker. As a simple example, if you were very confident that the Euro EUR was going to gain strength against the US Dollar USD in the mid to long term, then you may decide to buy or go long on EURUSD. If the EURUSD was trading at . at the time of purchase, a € investment would have cost you $. As time goes by, if the EURUSD gets stronger, e.g. its exchange rate moves to . over the course of a few months, and you decided to close your trade there and then, you would have netted $, i.e. a profit of $. No One-Size-Fits-All Approach to Forex Trading Whilst forex trading is easy to delve into, it’s notoriously difficult to master, especially for those without a financial background. A lot of time and effort is needed to practice trading on demo and eventually on real accounts. No doubt it takes dedication, discipline and patience, along with developing an edge to beat the market. That edge is gained by studying at least one of two fields, known as technical analysis and fundamental analysis. The former involves looking at currency charts, seeking out certain patterns using tools and software known as price action and indicators to help determine which way a particular forex pair may meander.By extension, the latter involves focusing on the latest news reports and geopolitical situation of the countries involved. Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $ billion turnover every single day, with the market being open hours a day, days a week.It goes without saying that forex trading is a very attractive market for not only banks and hedge funds, but even for the small individual trader, due to the low barriers for entry. One literally only needs a computer with an internet connection, and some money deposited with a forex broker. As a simple example, if you were very confident that the Euro EUR was going to gain strength against the US Dollar USD in the mid to long term, then you may decide to buy or go long on EURUSD. If the EURUSD was trading at . at the time of purchase, a € investment would have cost you $. As time goes by, if the EURUSD gets stronger, e.g. its exchange rate moves to . over the course of a few months, and you decided to close your trade there and then, you would have netted $, i.e. a profit of $. No One-Size-Fits-All Approach to Forex Trading Whilst forex trading is easy to delve into, it’s notoriously difficult to master, especially for those without a financial background. A lot of time and effort is needed to practice trading on demo and eventually on real accounts. No doubt it takes dedication, discipline and patience, along with developing an edge to beat the market. That edge is gained by studying at least one of two fields, known as technical analysis and fundamental analysis. The former involves looking at currency charts, seeking out certain patterns using tools and software known as price action and indicators to help determine which way a particular forex pair may meander.By extension, the latter involves focusing on the latest news reports and geopolitical situation of the countries involved. Read this Term scheme. They are blamed for soliciting funds totaling at least $. million from at least investors.

Additionally, the US agency named Yang’s husband, Chao Yang, as a relief defendant for receiving the investor funds of the trading scheme.

The US Securities and Exchange Commission SEC filed a separate civil complaint against Yang and her companies for the same schemes.

The complaint lodged by the  CFTC  CFTC The Commodity Exchange Act CEA in the United States created the Commodity Futures Trading Commission CFTC. The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange CBOE CME Group International Monetary Market IMM Chicago Board of Trade CBOT Chicago Mercantile Exchange CME GLOBEX New York Mercantile Exchange NYMEX and COMEX Kansas City Board of Trade KCBT NEX Group plc NXG.L Intercontinental Exchange ICE International Petroleum Exchange IPE New York Board of Trade NYBOT Winnipeg Commodity Exchange WCE TSX Group s Natural Gas Exchange Partnership European Climate Exchange Chicago Climate Exchange CCE NYSE London International Financial Futures and Options Exchange LIFFE Minneapolis Grain Exchange MGEX Nadex formerly HedgeStreet OneChicago Single-stock futures SSF s and Futures on ETFs Nasdaq Futures Exchange NFX The Commodity Exchange Act CEA in the United States created the Commodity Futures Trading Commission CFTC. The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange CBOE CME Group International Monetary Market IMM Chicago Board of Trade CBOT Chicago Mercantile Exchange CME GLOBEX New York Mercantile Exchange NYMEX and COMEX Kansas City Board of Trade KCBT NEX Group plc NXG.L Intercontinental Exchange ICE International Petroleum Exchange IPE New York Board of Trade NYBOT Winnipeg Commodity Exchange WCE TSX Group s Natural Gas Exchange Partnership European Climate Exchange Chicago Climate Exchange CCE NYSE London International Financial Futures and Options Exchange LIFFE Minneapolis Grain Exchange MGEX Nadex formerly HedgeStreet OneChicago Single-stock futures SSF s and Futures on ETFs Nasdaq Futures Exchange NFX Read this Term detailed that Yang with her two companies ran the trading scheme from around April through March . They approached investors and collected funds for the sole purported purpose of forex trading.

The companies are alleged to have made several false representations to the existing and potential pool participants of the scheme. The false claims include the managing of hundreds of millions of dollars in a variety of investment vehicles and achieving positive monthly returns.

Moreover, they claimed that all the collected investor proceeds were allocated to forex trading and were adhering to strategies that include low leverage ratios and moderate trading frequencies.

“These were false claims and the defendants routinely suffered trading losses using high leverage and high-frequency trading strategies,” the CFTC stated.

In addition, Yang was blamed for using the investor funds for personal expenses. Also, she transferred around $, to her personal bank account and another $. million to her husband’s. Further, she transferred more than $ million to a joint bank account which is in the name of her and her husband.

The CFTC is now seeking full restitution of the solicited funds to the trading pool participants and disgorgement of all ill-gotten gains. Furthermore, the agency wants to impose civil monetary penalties and permanent registration and trading bans, along with a permanent injunction.

The Commodity Futures Trading Commission CFTC has continued its bust of fraudulent schemes. On Wednesday, the agency filed a civil enforcement action against Kay Yang and her two companies, AK Equity Group LLC and Xapphire LLC, for foreign exchange forex fraud.

Yang and her two companies have been charged with fraud and misappropriation related to the  forex trading  Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $ billion turnover every single day, with the market being open hours a day, days a week.It goes without saying that forex trading is a very attractive market for not only banks and hedge funds, but even for the small individual trader, due to the low barriers for entry. One literally only needs a computer with an internet connection, and some money deposited with a forex broker. As a simple example, if you were very confident that the Euro EUR was going to gain strength against the US Dollar USD in the mid to long term, then you may decide to buy or go long on EURUSD. If the EURUSD was trading at . at the time of purchase, a € investment would have cost you $. As time goes by, if the EURUSD gets stronger, e.g. its exchange rate moves to . over the course of a few months, and you decided to close your trade there and then, you would have netted $, i.e. a profit of $. No One-Size-Fits-All Approach to Forex Trading Whilst forex trading is easy to delve into, it’s notoriously difficult to master, especially for those without a financial background. A lot of time and effort is needed to practice trading on demo and eventually on real accounts. No doubt it takes dedication, discipline and patience, along with developing an edge to beat the market. That edge is gained by studying at least one of two fields, known as technical analysis and fundamental analysis. The former involves looking at currency charts, seeking out certain patterns using tools and software known as price action and indicators to help determine which way a particular forex pair may meander.By extension, the latter involves focusing on the latest news reports and geopolitical situation of the countries involved. Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $ billion turnover every single day, with the market being open hours a day, days a week.It goes without saying that forex trading is a very attractive market for not only banks and hedge funds, but even for the small individual trader, due to the low barriers for entry. One literally only needs a computer with an internet connection, and some money deposited with a forex broker. As a simple example, if you were very confident that the Euro EUR was going to gain strength against the US Dollar USD in the mid to long term, then you may decide to buy or go long on EURUSD. If the EURUSD was trading at . at the time of purchase, a € investment would have cost you $. As time goes by, if the EURUSD gets stronger, e.g. its exchange rate moves to . over the course of a few months, and you decided to close your trade there and then, you would have netted $, i.e. a profit of $. No One-Size-Fits-All Approach to Forex Trading Whilst forex trading is easy to delve into, it’s notoriously difficult to master, especially for those without a financial background. A lot of time and effort is needed to practice trading on demo and eventually on real accounts. No doubt it takes dedication, discipline and patience, along with developing an edge to beat the market. That edge is gained by studying at least one of two fields, known as technical analysis and fundamental analysis. The former involves looking at currency charts, seeking out certain patterns using tools and software known as price action and indicators to help determine which way a particular forex pair may meander.By extension, the latter involves focusing on the latest news reports and geopolitical situation of the countries involved. Read this Term scheme. They are blamed for soliciting funds totaling at least $. million from at least investors.

Additionally, the US agency named Yang’s husband, Chao Yang, as a relief defendant for receiving the investor funds of the trading scheme.

The US Securities and Exchange Commission SEC filed a separate civil complaint against Yang and her companies for the same schemes.

The complaint lodged by the  CFTC  CFTC The Commodity Exchange Act CEA in the United States created the Commodity Futures Trading Commission CFTC. The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange CBOE CME Group International Monetary Market IMM Chicago Board of Trade CBOT Chicago Mercantile Exchange CME GLOBEX New York Mercantile Exchange NYMEX and COMEX Kansas City Board of Trade KCBT NEX Group plc NXG.L Intercontinental Exchange ICE International Petroleum Exchange IPE New York Board of Trade NYBOT Winnipeg Commodity Exchange WCE TSX Group s Natural Gas Exchange Partnership European Climate Exchange Chicago Climate Exchange CCE NYSE London International Financial Futures and Options Exchange LIFFE Minneapolis Grain Exchange MGEX Nadex formerly HedgeStreet OneChicago Single-stock futures SSF s and Futures on ETFs Nasdaq Futures Exchange NFX The Commodity Exchange Act CEA in the United States created the Commodity Futures Trading Commission CFTC. The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange CBOE CME Group International Monetary Market IMM Chicago Board of Trade CBOT Chicago Mercantile Exchange CME GLOBEX New York Mercantile Exchange NYMEX and COMEX Kansas City Board of Trade KCBT NEX Group plc NXG.L Intercontinental Exchange ICE International Petroleum Exchange IPE New York Board of Trade NYBOT Winnipeg Commodity Exchange WCE TSX Group s Natural Gas Exchange Partnership European Climate Exchange Chicago Climate Exchange CCE NYSE London International Financial Futures and Options Exchange LIFFE Minneapolis Grain Exchange MGEX Nadex formerly HedgeStreet OneChicago Single-stock futures SSF s and Futures on ETFs Nasdaq Futures Exchange NFX Read this Term detailed that Yang with her two companies ran the trading scheme from around April through March . They approached investors and collected funds for the sole purported purpose of forex trading.

The companies are alleged to have made several false representations to the existing and potential pool participants of the scheme. The false claims include the managing of hundreds of millions of dollars in a variety of investment vehicles and achieving positive monthly returns.

Moreover, they claimed that all the collected investor proceeds were allocated to forex trading and were adhering to strategies that include low leverage ratios and moderate trading frequencies.

“These were false claims and the defendants routinely suffered trading losses using high leverage and high-frequency trading strategies,” the CFTC stated.

In addition, Yang was blamed for using the investor funds for personal expenses. Also, she transferred around $, to her personal bank account and another $. million to her husband’s. Further, she transferred more than $ million to a joint bank account which is in the name of her and her husband.

The CFTC is now seeking full restitution of the solicited funds to the trading pool participants and disgorgement of all ill-gotten gains. Furthermore, the agency wants to impose civil monetary penalties and permanent registration and trading bans, along with a permanent injunction.