April 23, 2012
Federal Court in California Orders Forex Liquidity LLC to Pay $400,000 for Failing to Maintain Required Net Capital and Books and Records
Forex Liquidity also permanently barred from the industry
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a consent order of permanent injunction requiring defendant Forex Liquidity LLC (FXLQ) of Santa Ana, Calif., to pay a $400,000 civil monetary penalty to settle CFTC charges that it was undercapitalized and failed to maintain required books and records (see CFTC News Release 5426-07, December 19, 2007).
The consent order, entered on April 19, 2012, by Judge Cormac J. Carney of the U.S. District Court for the Central District of California, also permanently prohibits FXLQ from engaging in any commodity-related activity, including trading, and from registering or seeking exemption from registration with the CFTC. The order also permanently prohibits FXLQ from further violations of the Commodity Exchange Act and CFTC regulations, as charged.
According to the order, from at least November 30, 2007, to December 7, 2007, FXLQ’s adjusted net capital was below the required minimum capitalization amount. Additionally, the court found that from at least June 30, 2007, to November 30, 2007, FXLQ, through its agents, failed to maintain records that correctly reflected its assets, liabilities, and capital.
The CFTC thanks the National Futures Association for its assistance.
CFTC Division of Enforcement staff responsible for this case are Peter M. Haas, Richard P. Foelber, A. Daniel Ullman II, JonMarc P. Buffa, Paul G. Hayeck, and Joan Manley.
Last Updated: April 23, 2012