For Release: August 10, 2006
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that Judge Thomas C. Platt of the U.S. District Court for the Eastern District of New York entered a consent order against COES FX Clearing, Inc. (COESfx), a futures commission merchant based in Plainview, New York, establishing a permanent injunction and requiring COESfx to pay $246,601 in restitution to defrauded customers.
The order stems from a CFTC enforcement action against COESfx filed in 2005, charging co-defendants Anthony M. Frisone and Windsor Forex Trading Corp. (WFTC) with fraud in the solicitation of customers to trade foreign currency (forex) futures contracts. The complaint alleged that WFTC acted as an exclusive agent for COESfx in introducing forex futures trading accounts to COESfx and that COESfx, therefore, was liable as a principal for the acts of WFTC. (See CFTC News Release 5086-05, June 20, 2005.)
The consent order, entered on July 21, 2006, finds that, since at least December 2002 through March 2004, Frisone and WFTC fraudulently solicited approximately $327,000 from 20 retail customers to open accounts with COESfx to trade forex futures contracts. The solicitations falsely promised steady profits and limited trading risks. As a result of their investment with Frisone and WFTC, the 20 customers lost a total of $246,601.92. The consent order holds COESfx liable as a principal for the actions of WFTC
The following CFTC Division of Enforcement staff members are responsible for this case: Christine Ryall, Stephen Morris, Patricia Gomersall, Paul Hayeck, and Joan Manley.
Last Updated: April 22, 2010