For Release:April 3, 1997
FEDERAL COURT APPROVES CFTC SETTLEMENT WITH
YUAN-YI LAO WHO WAS CHARGED WITH THE UNLAWFUL
OFFER AND SALE OF FOREIGN CURRENCY FUTURES
Lao Agrees to Pay $450,000 to Court-appointed Receiver for Distribution to the Former Customers of Standard Forex, in Addition to Other Relief
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today it has agreed to a settlement with Yuan-Yi Lao (Lao), a resident of the People's Republic of China, in connection with a civil injunctive complaint filed by the CFTC on January 8, 1993, and subsequently amended on August 16, 1993 (see CFTC News Release 3611-93, January 12, 1993). Lao has never been registered with the CFTC in any capacity.
The CFTC alleged in its amended complaint, inter alia, that Lao was a director and controlling person of Standard Forex, Inc., a New York company that offered and sold illegal off-exchange foreign currency futures contracts to members of the public in violation of section 4(a) of the Commodity Exchange Act (CEA) and operated as an unregistered futures commission merchant in violation of section 4d of the CEA. Standard Forex conducted its operations in Flushing, New York, from March 1992 until January 8, 1993, when the CFTC brought this action.
Lao, without admitting or denying any of the allegations of the amended complaint, except jurisdiction and venue, consented to the entry of the order in the U.S. District Court for the Eastern District of New York:
In addition to Lao, there were 13 other defendants charged in the amended complaint. Seven have settled with the CFTC, five have defaulted, and one defendant, James Feng, continues to contest the action.