The CFTC has secured injunctive aid towards EminiFX and proprietor Eddy Alexandre.
Unsealing of the CFTC’s case at present confirms Alexandre is dealing with each civil and legal fraud prices.
The CFTC’s case towards Alexandre was filed beneath seal on Might tenth.
Following Alexandre’s arrest on Might eleventh, the CFTC filed a movement requesting their case be unsealed. The courtroom granted the CFTC’s movement on Might twelfth.
Later that very same day the courtroom awarded the CFTC a ex-parte statutory restraining order and injunction towards Alexandre.
On account of this order, an unbiased Receiver has been put in control of EminiFX.
The CFTC’s criticism was filed alongside legal proceedings towards Alexandre.
As alleged by the CFTC, Alexandre launched EminiFX on or round September 2021.
Eddy Alexandre, individually and as principal and agent of EminiFX, Inc., has fraudulently solicited, accepted, and pooled at the very least $59 million from a whole lot of members of most people to purportedly commerce international foreign money trade and cryptocurrencies in addition to futures and choices in an funding membership, when the truth is the Defendants misappropriated the overwhelming majority of participant funds to pay members in a Ponzi-like scheme or for Alexandre’s private bills.
The CFTC alleges EminiFX took in $59 million {dollars} from “a whole lot of members”.
BehindMLM revealed its EminiFX evaluation again in March, appropriately figuring out it as a Ponzi scheme.
The ruse behind EminiFX was a buying and selling bot. This is without doubt one of the most typical MLM Ponzi ruses used at present.
As revealed by the CFTC;
- Eddy Alexandre solely traded $9 million of the $59 million invested into EminiFX;
- Alexandre didn’t commerce foreign exchange and crypto as represented, as an alternative he traded shares, broad-based index futures, together with E-mini S&P 500
futures contracts, E-mini Nasdaq 100 futures contracts, E-mini Russell 2000 futures contracts;
and Dow Futures Mini contracts - of the invested funds he did commerce, Alexandre sustained heavy losses ($6.2 million, representing about 70% of the buying and selling precept);
- Alexandre redirected $14.7 million of the $59 million invested into EminiFX to himself;
- vital extra funds had been transferred to Alexandre’s “associates”;
- Alexandre lied about EminiFX making members millionaires;
- Alexandre represented himself to be a millionaire, when the truth is he was a twice bankrupt charlatan with a damaging net-worth of $122,838 previous to launching EminiFX; and
- at no level was Alexandre or EminiFX registered with the CFTC, as was legally required
Some participant funds had been distributed to people, together with at the very least $200,000 to 1 particular person. Extra participant funds had been donated to charities chosen by Alexandre.
Alexandre additionally used participant funds to pay for enterprise and private bills.
For instance, Alexandre used participant funds to make funds to BMW, Mercedes Benz, Saks Fifth Avenue, flights, luxurious inns and attire, and occupational and bodily remedy.
Alexandre additionally used substantial participant funds to hire and furnish workplace house for EminiFX and to throw “galas” on behalf of EminiFX, which Defendants used to solicit extra contributions from members.
Alexandre’s conduct constitutes violations of the Commodity Trade Act, in addition to CFTC laws.
The CFTC’s criticism particulars six counts of fraud towards EminiFX and Alexandre.
Reduction requested by the FTC consists of:
- affirmation EminiFX and Alexandre violated the Commodities and Trade Act;
- a everlasting injunction;
- disgorgement;
- restitution;
- a civil financial penalty; and
- authorized prices
On Might twelfth the courtroom granted the CFTC an ex-parte statutory restraining order (SRO). That is the equal of the Non permanent Restraining Orders we often see.
The SRO acknowledges the CFTC “has made a correct prima facie displaying” that, by EminiFX, Alexandre dedicated fraud.
On account of the SRO, EminiFX and its belongings have been put beneath management of a Non permanent Receiver. Eddy Alexandre’s belongings have been frozen.
The SRO and Non permanent Receiver are in place till a scheduled preliminary injunction listening to on Might twenty fourth.
On that date, if a preliminary injunction is granted, the EminiFX Non permanent Receiver will turn out to be everlasting.
This may see the method of securing EminiFX belongings (together with potential clawback from EminiFX’s prime promoters and earners), with the goal of eventual distribution to the Ponzi scheme’s victims.
Pending any updates between now and Might twenty fourth, our subsequent CFTC EminiFX case replace will possible be on Might twenty fifth.
I’m conscious scammers related to Eddy Alexandre are nonetheless holding Zoom calls claiming to symbolize EminiFX. EminiFX is beneath management of the Non permanent Receiver as of Might twelfth.
The appointed EminiFX Non permanent Receiver is Dave A. Castleman, a accomplice of the New York regulation agency Raines Feldman.
Restoration scammers are possible operating rife. Contact from anybody relating to EminiFX who isn’t Dave Castleman representing the EminiFX Receivership needs to be discarded.
Within the occasion scammers impersonate Castleman or the EminiFX Non permanent Receivership, know that at no level will the Non permanent Receivership ask EminiFX victims for cash or make any guarantees or representations relating to fund restoration.
Anybody who tells you they’ll get your EminiFX a reimbursement is mendacity to you. Anybody claiming to symbolize EminIFX, on Zoom calls or in any other case, is mendacity to you.
Welcome to the Ponzi end-game.
Having coated MLM fraud for over a decade, I can admire the frustration of victims. Merely put although; I don’t have the persistence for it.
If you wish to rage within the feedback, “pretend information! I put a voodoo curse on your loved ones! and so on and so on.”, it’ll be marked as spam.
If you wish to get indignant, take out your frustrations on the scammers who recruited you into EminiFX.
Additionally a reminder to the YouTube promoters who’re nonetheless at it: Recruiting individuals into scams is fraud. It’s simply as unlawful as operating the scams.
“I’m not a monetary advisor and this isn’t monetary recommendation” just isn’t a authorized protection towards Securities and Trade Act and Commodity Trade Act violations.
You run the danger of getting civil regulatory motion filed towards you. In addition to clawback litigation to recuperate what you’ve stolen.