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RELEASE: pr5599-09

  • Release: 5599-09
    For Release: January 15, 2009

    New York Court Enters Order Imposing a Fine and Other Sanctions against Boris Shuster of Fort Dix, New Jersey, in a Foreign Currency (Forex) Scam

    Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced that it obtained a $240,000 civil monetary penalty judgment and trading and registration bans against Boris Shuster, of Fort Dix, New Jersey, for operating an illegal foreign currency (forex) boiler room operation and violating the anti-fraud provisions of the Commodity Exchange Act.

    The order, entered by U.S. District Court Judge Leo I. Glasser in the Eastern District of New York, grants the CFTC’s motion for summary judgment against Shuster. The order also notes that although Shuster’s violations merit the award of significant restitution, the court is not ordering additional restitution because Shuster is subject to a $310,000 criminal judgment restitution obligation entered in a parallel criminal proceeding, U.S. v. Shuster, E.D.N.Y. Docket No. 04 Cr. 628.

    The court’s order stems from a CFTC complaint filed in October 2003 (see CFTC News Release, 4852-03, October 16, 2003), alleging that Shuster and others fraudulently solicited more than 300 customers to trade illegal off-exchange forex contracts. The court’s order specifically finds that, from at least December 2000 to at least July 2001, Shuster used a sales force to make fraudulent and misleading representations regarding the profitability and safety of trading forex contracts and the actual trading of customer funds. The order also finds that Shuster issued false account statements to customers, and then told customers that catastrophic trading losses had wiped out their funds.

    The CFTC would like to thank the U.S. Attorney’s Office for the Eastern District of New York for their assistance.

    The following CFTC staff members are responsible for this case: Sheila Marhamati, Steven Ringer, Lenel Hickson, Jr., and Vincent McGonagle.

    Media Contacts
    R. David Gary
    202-418-5085

    Dennis Holden
    202-418-5088

    Last Updated: August 25, 2009

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