The Commodity Futures Trading Commission (CFTC) issued eight orders settling charges against individuals who acted as unregistered associated persons of unregistered foreign introducing brokers. The orders require them to cease the illegal conduct and bar them for two years from registering with the CFTC in any capacity or acting as a principal, agent or employee of any CFTC registrant.
According to the orders, the individuals solicited U.S. customers who were not eligible contract participants for off-exchange leveraged or margined retail foreign currency and retail commodities transactions. The cases relate to an earlier CFTC order sanctioning Netrios LP Ltd. and Red Acre Ltd. for facilitating illegal off-exchange commodity transactions with U.S. customers. The Securities and Exchange Commission (SEC) also settled charges based on the same conduct. Each CFTC order recognizes the penalty the individual owes in the related SEC proceeding.