The authorized representatives of My Foreign exchange Funds and its CEO, Murtaza Kazmi, have responded to all of the allegations introduced by the Commodity Futures Buying and selling Fee (CFTC) and categorically denied them.
In keeping with the 41-page movement crammed within the US courtroom yesterday (Tuesday), “the CFTC has no chance of succeeding on its allegations as a result of MFF has by no means solicited or accepted any investments from its prospects or engaged in retail overseas change transactions or, certainly, any transactions with retail buyers.”
The CFTC initially filed the lawsuit towards two entities named Merchants International Group, one primarily based in New Jersey and the opposite in Canada, working as My Foreign exchange Funds, and Kazmi, who controls them because the CEO. With many allegations, the crux of the regulatory lawsuit is that Merchants International is a fraudulent group.
The Protection Denies All Allegations
Within the current response, the attorneys of My Foreign exchange Funds and Kazmi questioned the jurisdiction of the CFTC over the prop buying and selling platform, stating that “the transactions between MFF and its prospects fall exterior the scope of the Commodities Alternate Act’s (CEA’s) anti-fraud provisions, registration necessities, and off-exchange buying and selling prohibitions.”
“However even when these provisions did apply, the CFTC’s allegations are devoid of factual assist,” the movement of the protection added.
Murteza Kazmi, CEO at My Foreign exchange Funds
The courtroom submitting detailed the enterprise mannequin of My Foreign exchange Funds, highlighting that the platform “paid out tens of hundreds of thousands of {dollars} to prospects in accordance with the principles it established and that had been agreed by its prospects.” Additional, it identified that the CFTC failed to provide proof from even a single distressed buyer of My Foreign exchange Funds.
“Delivering exactly what one guarantees is not fraud; it’s good enterprise,” the movement said. “The CFTC can not show in any other case.”
One of many major defenses of the Legal professionals of My Foreign exchange Funds is that the shoppers by no means invested their very own funds. It was all the time the corporate’s cash that was used to fund all the accounts. The shoppers agreed “to function unbiased contractors offering buying and selling companies to MFF.” It additional revealed that a good portion of the buying and selling actions occurred on simulated accounts.
“To the extent, CFDs and overseas change contracts existed — and most had been solely simulated — they had been entered into solely by MFF, utilizing its personal capital, with CDO Markets,” the movement said.
Furthermore, the movement highlighted that the CFTC should show the making of a misrepresentation, deceptive assertion, or a misleading omission, scienter, and materiality to again the fraud claims. Nonetheless, based on the defendants, the regulatory failed to determine any of them.
Vital Discover 📢
Yesterday we discovered that, with out prior discover or dialogue, a provincial securities regulator in Canada and the commodities regulator in america issued orders stopping us from buying and selling securities or accessing funds in our financial institution accounts.
Till… pic.twitter.com/dKpxmx5axT
— MyForexFunds (@MyForexFunds) September 1, 2023
Removing of a Preliminary Injunction
With a earlier courtroom order, the CFTC managed to freeze the belongings of My Foreign exchange Funds and in addition the private belongings of Kazmi. The courtroom moreover appointed a short lived receiver. Nonetheless, based on the defendants’ legal professionals, “a pretrial asset freeze is an ‘extraordinary treatment’.”
“The Courtroom ought to deny the CFTC’s movement for a preliminary injunction as being pointless to preserving Defendants’ belongings,” the movement said. “Even when the Courtroom determines that some injunction is suitable, nonetheless, that order ought to be restricted to freezing any funds causally linked to the alleged wrongdoing such that they could be topic to disgorgement (of which Defendants keep there are none).”
Underneath this argument, the disgorgement quantity ought to be not more than $10,370,878.10, representing the gross earnings MFF earned from merchants within the reside buying and selling setting who didn’t qualify for cost. On prime of that, the movement identified that such merchants comprise solely 6% of all MFF accounts, at most, over time.
In an earlier movement, the protection stated that the CFTC had “recklessly mischaracterized transfers to and from Defendants’ financial institution accounts earlier than the SRO [statutory restraining order] was entered.”
Moreover, it pressured that any injunction ought to apply solely to the MFF company entities and to not Kazmi personally.
The authorized representatives of My Foreign exchange Funds and its CEO, Murtaza Kazmi, have responded to all of the allegations introduced by the Commodity Futures Buying and selling Fee (CFTC) and categorically denied them.
In keeping with the 41-page movement crammed within the US courtroom yesterday (Tuesday), “the CFTC has no chance of succeeding on its allegations as a result of MFF has by no means solicited or accepted any investments from its prospects or engaged in retail overseas change transactions or, certainly, any transactions with retail buyers.”
The CFTC initially filed the lawsuit towards two entities named Merchants International Group, one primarily based in New Jersey and the opposite in Canada, working as My Foreign exchange Funds, and Kazmi, who controls them because the CEO. With many allegations, the crux of the regulatory lawsuit is that Merchants International is a fraudulent group.
The Protection Denies All Allegations
Within the current response, the attorneys of My Foreign exchange Funds and Kazmi questioned the jurisdiction of the CFTC over the prop buying and selling platform, stating that “the transactions between MFF and its prospects fall exterior the scope of the Commodities Alternate Act’s (CEA’s) anti-fraud provisions, registration necessities, and off-exchange buying and selling prohibitions.”
“However even when these provisions did apply, the CFTC’s allegations are devoid of factual assist,” the movement of the protection added.
Murteza Kazmi, CEO at My Foreign exchange Funds
The courtroom submitting detailed the enterprise mannequin of My Foreign exchange Funds, highlighting that the platform “paid out tens of hundreds of thousands of {dollars} to prospects in accordance with the principles it established and that had been agreed by its prospects.” Additional, it identified that the CFTC failed to provide proof from even a single distressed buyer of My Foreign exchange Funds.
“Delivering exactly what one guarantees is not fraud; it’s good enterprise,” the movement said. “The CFTC can not show in any other case.”
One of many major defenses of the Legal professionals of My Foreign exchange Funds is that the shoppers by no means invested their very own funds. It was all the time the corporate’s cash that was used to fund all the accounts. The shoppers agreed “to function unbiased contractors offering buying and selling companies to MFF.” It additional revealed that a good portion of the buying and selling actions occurred on simulated accounts.
“To the extent, CFDs and overseas change contracts existed — and most had been solely simulated — they had been entered into solely by MFF, utilizing its personal capital, with CDO Markets,” the movement said.
Furthermore, the movement highlighted that the CFTC should show the making of a misrepresentation, deceptive assertion, or a misleading omission, scienter, and materiality to again the fraud claims. Nonetheless, based on the defendants, the regulatory failed to determine any of them.
Vital Discover 📢
Yesterday we discovered that, with out prior discover or dialogue, a provincial securities regulator in Canada and the commodities regulator in america issued orders stopping us from buying and selling securities or accessing funds in our financial institution accounts.
Till… pic.twitter.com/dKpxmx5axT
— MyForexFunds (@MyForexFunds) September 1, 2023
Removing of a Preliminary Injunction
With a earlier courtroom order, the CFTC managed to freeze the belongings of My Foreign exchange Funds and in addition the private belongings of Kazmi. The courtroom moreover appointed a short lived receiver. Nonetheless, based on the defendants’ legal professionals, “a pretrial asset freeze is an ‘extraordinary treatment’.”
“The Courtroom ought to deny the CFTC’s movement for a preliminary injunction as being pointless to preserving Defendants’ belongings,” the movement said. “Even when the Courtroom determines that some injunction is suitable, nonetheless, that order ought to be restricted to freezing any funds causally linked to the alleged wrongdoing such that they could be topic to disgorgement (of which Defendants keep there are none).”
Underneath this argument, the disgorgement quantity ought to be not more than $10,370,878.10, representing the gross earnings MFF earned from merchants within the reside buying and selling setting who didn’t qualify for cost. On prime of that, the movement identified that such merchants comprise solely 6% of all MFF accounts, at most, over time.
In an earlier movement, the protection stated that the CFTC had “recklessly mischaracterized transfers to and from Defendants’ financial institution accounts earlier than the SRO [statutory restraining order] was entered.”
Moreover, it pressured that any injunction ought to apply solely to the MFF company entities and to not Kazmi personally.
