September 8, 2011
CFTC Charges Massachusetts Man Jeffrey Liskov and His Company, EagleEye Asset Management, LLC, with Committing a $3 Million Forex Fraud
Customer had authorized trading of a portion of retirement funds based on alleged misrepresentations.
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a civil complaint charging Jeffrey Liskov and his company, EagleEye Asset Management, LLC (EEAM), both of Plymouth, Mass., with cheating and defrauding at least one customer in the United States of over $3 million of retirement funds while trading off-exchange foreign currency contracts (forex) on the customer’s behalf.
The CFTC complaint, filed in the U.S. District Court for the District of Massachusetts on September 8, 2011, alleges that, from at least October 2008 to August 2010, Liskov failed to inform the customer that he was an unsuccessful forex trader and that forex trading is highly volatile and extremely risky. Liskov also allegedly misrepresented to the customer that forex trading suited conservative investment goals.
The complaint further alleges that Liskov engaged in unauthorized trading of the customer’s accounts, misappropriated funds, and forged the customer’s signatures on wire transfer and account opening documents that he provided to the brokerage house carrying her accounts. As a result of this unauthorized trading scheme, Liskov and EEAM received approximately $235,000 in performance incentive fees to which they were not entitled, according to the complaint. By the time the customer discovered the unauthorized trading, Liskov and EEAM allegedly had lost over $3.24 million by trading forex.
In its continuing litigation, the CFTC seeks a return of ill-gotten gains, restitution, rescission, civil monetary penalties, trading and registration bans, and a permanent injunction against further violations of the federal commodities laws.
The CFTC appreciates the assistance of the United States Attorney’s Office and the Securities and Exchange Commission in Boston, Massachusetts, and the Financial Services Authority in the United Kingdom.
CFTC Division of Enforcement staff members responsible for this action are Camille M. Arnold, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: September 9, 2011