For Release: July 24, 2007
Washington, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a Notice of Intent to Revoke Registration (Notice) against Next Financial Services Unlimited, Inc. (Next) and New World Trading, LLC (New World), both of Delray Beach, Florida.
The Notice, filed on July 23, 2007, alleges that, under the Commodity Exchange Act (CEA), Next and New World are subject to statutory disqualification of their registrations as Introducing Brokers based on the entry of a permanent injunction order and final judgment against them in the U.S. District Court for the Southern District of Florida on January 11, 2007 (see CFTC Press Release 5279-07, January 18, 2007).
The January 11th order found that the defendants, from at least September 2003 through at least June 2004, fraudulently solicited nearly $3.4 million from at least 199 retail customers in and outside the United States to invest in options on foreign currency.
The order further found that the defendants misrepresented the profit potential and risk involved in trading foreign currency (forex) options, and also misrepresented the level of trading experience of Next Financial and New World employees. Defendants, who were found to have violated certain anti-fraud provisions of the CEA and CFTC regulations, were ordered to pay approximately $3 million in restitution and approximately $2 million in civil monetary penalties. The order also imposed trading and registration bans on defendants.
The following CFTC Division of Enforcement staff were responsible for this action: Michael J. Otten, Gretchen Lowe, and Vince McGonagle.
Last Updated: July 31, 2007