January 10, 2008
As you are aware, the Commodity Futures Trading Commission (CFTC) filed a complaint in the United States District Court against Forex Liquidity LLC (FXLQ) on December 13, 2007. This notice is to provide you with the most recent updates regarding this matter and to address your concerns about your funds.
Pursuant to a provision in the Commodity Exchange Act (CEA), 7 USC § 1 et. seq., the CFTC filed an ex parte motion seeking an order imposing a blanket freeze on FXLQ’s assets, ensuring access to FXLQ’s books and records by representatives of the Commission, and appointing a temporary receiver to marshal FXLQ’s assets. The Court granted this motion and entered a statutory restraining order (SRO). The Court then scheduled a hearing for January 4, 2008 to allow the Defendant to show cause why the SRO should not remain in place and why a preliminary injunction should not be entered finding that FXLQ violated the CEA, and ordering FXLQ not to violate the CEA. Recently, the show cause hearing was rescheduled to January 28, 2008.
The assets of FXLQ are currently frozen and under the control of the Court-appointed Receiver Robb Evans & Associates LLC. The Receiver acts as an officer of the Court and all further decisions regarding the receivership as well as the disposition of any assets held by the Receiver will be made by the Court.
A number of customers have made inquiries requesting the return of funds from their account. Please be advised that the Receiver at this time cannot comply with any requests for disbursements of customer funds until the Court has entered an order that authorizes and directs the Receiver to disburse funds. The Receiver does not anticipate that this can occur until such time as the Receiver provides a report to the Court on the complete extent of FXLQ’s assets and liabilities, and the Court can rule on the allegations in the CFTC’s complaint. Unfortunately, at this time we cannot provide a timetable when this might occur, but you should be assured that it is the duty of the Receiver to marshal the current assets of FXLQ and its customers. Lastly, we ask for your patience and hope that you understand this may take some time to sort out.
Going forward, if you would like updates regarding this case, the Receiver will post the most current information at http://www.robbevans.com/html/forexlq.html. Thank you.
Robb Evans and Associates LLC
11450 Sheldon Street
Sun Valley, CA 91352-1121
Last Updated: March 23, 2011