For Release: December 6, 2007
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) announced today that it has issued an order revoking the registrations of Next Financial Services Unlimited, Inc. (Next) and New World Trading, LLC (New World) as Introducing Brokers (IBs). The order finalized an October 12, 2007, initial order issued by a CFTC Administrative Law Judge (ALJ) and resolves a CFTC statutory disqualification proceeding brought against Next and New World on July 12, 2007 (see CFTC Press Release 5358-07, July 24, 2007).
In the initial order, the ALJ entered a default judgment against Next and New World and found that appropriate bases existed for revoking their registrations 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 District Court’s 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 (forex). The order further found that the defendants misrepresented the profit potential and risk involved in trading forex options, and also misrepresented the level of trading experience of Next Financial and New World employees. Defendants were ordered to pay restitution of approximately $3 million and about $2 million civil monetary penalties. The July 11th order also imposed trading and registration bans on defendants.
The following CFTC Division of Enforcement staff members were responsible for this case: Kevin K. Batteh, James H. Holl, III, Gretchen L. Lowe.
Last Updated: December 5, 2007