For Release: January 3, 2008
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a Notice of Intent to permanently revoke the registration of Worldwide Clearing, LLC (Worldwide) of Ft. Lauderdale, Florida, as a Futures Commission Merchant.
The Notice alleges that under the Commodity Exchange Act, Worldwide is subject to disqualification from registration based on the September 14, 2007, entry of a consent order of permanent injunction and other equitable relief against it in the United States District Court for the Southern District of New York. The consent order resulted from a CFTC civil complaint filed on September 30, 2005 (see CFTC Press Release 5131-05, October 18, 2005).
The consent order finds that, from November 2004 through at least June 2005, International Currency Exchange, Inc. (IC Exchange) solicited members of the general public to open accounts to trade foreign currency (forex) options. In soliciting prospective customers, IC Exchange knowingly or recklessly made misrepresentations regarding the risks and rewards of trading forex options. The consent order finds under its introducing agreement and in the course of conduct, IC Exchange acted as Worldwide’s agent in soliciting customers to open accounts with Worldwide for the purpose of speculating in forex options and that as a result, Worldwide is liable for IC Exchange’s fraud.
The consent order prohibits Worldwide from seeking registration with the CFTC in any capacity and imposes a $130,000 civil monetary penalty and restitution of $670,000 on Worldwide.
The following CFTC Division of Enforcement staff are responsible for this action: Eliud Ramirez, Nathan Ploener, Manal Sultan, Lenel Hickson, Stephen J. Obie, and Vincent A. McGonagle.
Last Updated: January 3, 2008