FxWirePro: US-CFTC Charges Florida-Based Company With $15 Million For Fraudulent Transaction and Non-Compliance

On regulatory grounds, the US-CFTC has been functioning stringently by charging fraudulent companies and companies of non-compliance.

They recently sued Naveda Company in $11 Million Cryptocurrency Fraudulent Scheme

The U.S. Commodity Futures Trading Commission announced of the filing of a civil enforcement action in the U.S. District Court for the District of Nevada, charging David Gilbert Saffron of Las Vegas, Nevada and Circle Society, Corp., a Nevada corporation, with fraudulent solicitation, misappropriation, and registration violations pertaining to an $11 million binary options scheme Saffron operated through Circle Society.

For now, CFTC has announced that the U.S. District Court for the Southern District of Florida entered a default judgment against defendants Aviv Michael Hen of New York, and Omega Knight 2, LLC, as well as a consent order against Erez Hen of Florida, for fraud and illegal, off-exchange precious metals transactions and failing to register with the CFTC. 

The court’s default judgment requires defendants Omega Knight and Aviv Hen to pay a civil monetary penalty of $11,442,771, pay $3,814,257 in disgorgement, and imposes permanent registration and trading bans against them. The court’s consent order requires Erez Hen to pay a civil monetary penalty of $75,000, pay $275,000 in disgorgement, and imposes five-year registration and trading ban against him, and requires him to comply with certain undertakings involving two Erez Hen-owned entities unrelated to Omega Knight.

The judgment and consent order resolve a CFTC enforcement case filed on June 13, 2018 (refer CFTC Press Release 7740-18), charging the defendants with engaging in illegal, off-exchange precious metals transactions.