For Release: April 19, 2007
U.S. Commodity Futures Trading Commission Files Fraud Action against Florida Foreign Currency (Forex) Firm, Its Owner, and Futures Commission Merchant
Millenium Trading Group, Inc. and Cedric R. Stanton Charged With Fraudulently Soliciting Customers and Misappropriating Funds
Washington, D.C. — The U.S. Commodity Futures Trading Commission (CFTC) announced the filing of an enforcement action in the U.S. District Court for the Eastern District of Michigan against Millenium Trading Group, Inc. (MTG), a Miramar, Florida corporation; Cedric R. Stanton, the President and owner of MTG; and Worldwide Clearing, LLC (WWC) of Fort Lauderdale, Florida.
The CFTC complaint (CFTC v. Millenium Trading Group, Inc., Cedric R. Stanton, and Worldwide Clearing, LLC, Civil Action No.: 07-CV-11626) alleges that MTG and Stanton fraudulently solicited customers to open commodity trading accounts by misrepresenting 1) the company’s profitability, 2) the risks involved in trading forex futures, 3) MTG’s purported success, and 4) the commissions charged to customers.
The complaint, filed on April 10, 2007, further charges that MTG and Stanton solicited potential customers to trade foreign currency futures and options contracts (forex contracts) by claiming that customers could make large profits in a short period of time. For example, they claimed that a customer could turn $200,000 into $1,000,000 in only a few weeks of trading with MTG.
The complaint further alleges that a potential customer was told by MTG’s employees that she “could not lose” and that this was a “safe investment.” MTG and Stanton solicited and accepted in excess of $490,000 from customers, and they misappropriated approximately $49,000 provided by an MTG customer to invest in forex futures, according to the complaint.
MTG was an agent of WWC, a registered futures commission merchant, thereby making WWC liable for MTG’s fraudulent activities. Also, as alleged, WWC was significantly involved in supervising MTG’s activities and furthered the fraudulent activity by, for example, informing at least one MTC customer that WWC was so satisfied with MTG and Stanton’s trading guidelines and strategies that it was using those same guidelines and strategies with other introducing brokers with whom it worked.
In its continuing litigation against defendants, the CFTC is seeking preliminary and permanent injunctive relief, return of funds to defrauded customers, repayment of ill-gotten gains, and an award of civil monetary penalties.
The following CFTC Division of Enforcement staff are responsible for this case: Kenneth W. McCracken, Charles D. Marvine, Lacey Dingman, and Richard Glaser.
Last Updated: April 25, 2007