CALIFORNIA FOREIGN CURRENCY FIRM AND ITS PRINCIPAL AGREE TO PAY OVER $1 MILLION IN SETTLEMENT OF U.S. GOVERNMENT FOREIGN CURRENCY FRAUD ACTION
In Settling Charges by the U.S. Commodity Futures Trading Commission, Defendants Ben Ouyang and Victco Financial Services, Inc. Consented to Release over $1 Million in Frozen Funds as Restitution to Defrauded Customers
Consent Order also Imposes Civil Penalty of $120,000 and a Permanent Injunction
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that the United States District Court for the Central District of California issued a consent order of permanent injunction and ancillary relief in a foreign currency case against Ben Ouyang, who resides in Los Angeles County, California, and Victco Financial Services, Inc. (Victco), which was located in Temple City, California.
The order, which stems from a complaint filed on February 5, 2003 (see CFTC News Release 4755-03, February 13, 2003), finds that Ouyang and Victco engaged in fraud, in violation of the Commodity Exchange Act (CEA), in connection with the sale of illegal, off-exchange foreign currency futures contracts.
According to the allegations of the original complaint, Ouyang and Victco issued fictitious account statements to customers, as well as falsely:
Upon the filing of the original complaint, the CFTC froze over $1 million in funds that were held in trading accounts with registered futures commission merchants, and in bank accounts of Ouyang and Victco. Without either admitting or denying the allegations of the complaint, Ouyang and Victco agreed to the entry of an order that releases those frozen funds for repayment to their customers in accordance with a distribution plan to be determined by the court at a later date.
The consent order also provides that Ouyang and Victco are to pay jointly and severally a $120,000 civil monetary penalty, and permanently enjoins them from engaging in fraud or the illegal sale of off-exchange futures contracts in violation of the CEA.
The following Commission staff members were responsible for this case: John Wise, John Cipriani, David Acevedo, Lenel Hickson, Jr., Stephen J. Obie and Richard Wagner.
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