For Release: March 15, 2007
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that Judge Jillyn K. Schulze of the United States District Court for the District of Maryland entered a consent order of permanent injunction against Calvary Currencies LLC (Calvary), a/k/a Calvary Currency, of Rockville, Maryland, and its sole member, Arthur John Keeffe, II, of Bethesda, Maryland. The consent order resolves all charges against Calvary and Keeffe stemming from a complaint filed by the CFTC on March 29, 2004 (see CFTC Press Release 4921-04, May 3, 2004).
The CFTC charged that, from January 2001 to at least August 2002, Calvary and Keeffe fraudulently solicited customers to trade illegal off-exchange foreign currency (forex) futures contracts by misrepresenting the likelihood of profit and the firm’s track record. In particular, the complaint alleged that Calvary and Keeffe claimed to have doubled customers’ investments and that Calvary had “extraordinary” success trading forex in the past, when, in fact, Calvary’s trading statements for the time period showed a year-to-date loss. The defendants also failed to adequately disclose the risks associated with trading forex futures contracts, including a representation to at least one customer that there was “no risk if you know what you are doing.”
The consent order, entered on March 9, 2007, requires Calvary and Keeffe to make restitution totaling $75,000 and to pay a $50,000 civil monetary penalty. In addition, Calvary and Keeffe are permanently enjoined from, among other things, trading for themselves or others on any commodity market subject to CFTC jurisdiction and agree never to apply for registration, claim exemption from registration, or engage in any activity requiring registration or exemption from registration.
The following CFTC Division of Enforcement staff members are responsible for this case: Jan Folena, Elizabeth Padgett, Kevin Batteh, Judy T. Lee, Richard Glaser, and Richard Wagner.
Last Updated: July 25, 2007