For Release: April 10, 2008
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) announced today that it obtained $260,000 in civil monetary penalties in a CFTC enforcement action charging undercapitalization against Forefront Investment Corporation (Forefront) and Donald and Barbara Snellgrove, of Richmond, Virginia. Forefront is a registered Futures Commission Merchant (FCM)
The consent order, entered on March 31 2008, imposes a $130,000 civil monetary penalty each on Forefront and the Snellgroves and prohibits the Snellgroves from registering with the CFTC for a three-year period.
The order stems from a CFTC complaint filed on March 20, 2007, charging that Forefront, since at least January 31, 2007, was undercapitalized by approximately $2.3 million, in violation of the minimum net capital and record keeping requirements of the Commodity Exchange Act and CFTC regulations (see CFTC News Release 5310-07, March 27, 2007).
On March 27, 2007, the Honorable Robert E. Payne, U.S. District Court Judge granted the CFTC a preliminary injunction order against the defendants, which froze Forefront’s assets and appointed a Receiver (see CFTC News Release 5311-07, March 29, 2007). On April 10, 2007, the Receiver sold Forefront’s customer accounts to I-Trade FX, LLC, and settled all claims with the CFTC and the Snellgroves.
The Snellgroves were charged separately in an amended CFTC complaint filed on July 19, 2007, for controlling person liability in their capacity as Forefront’s principals.
The following CFTC staff members are responsible for this case: Tracey Wingate, John Dunfee, Paul Hayeck, and Joan Manley.
Last Updated: April 10, 2008