February 25, 2013
Federal Court in Massachusetts Imposes $600,000 Penalty on Jeffrey Liskov and His Company, EagleEye Asset Management, for Committing a $3 Million Forex Fraud
Defendants are permanently banned from futures industry
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Joseph L. Tauro of the U.S. District Court for the District of Massachusetts issued an Order requiring Defendants Jeffrey Liskov and his company, EagleEye Asset Management, LLC (EagleEye), both of Plymouth, Mass., each to pay a $300,000 civil monetary penalty for fraud in connection with foreign currency (forex) trading. The Order of Permanent Injunction also imposes permanent trading and registration bans against Liskov and EagleEye and prohibits them from violating the provisions of the Commodity Exchange Act, as charged.
The Order stems from a CFTC Complaint filed September 8, 2011 (see CFTC Release 6109-11), which charged Liskov with cheating and defrauding at least one customer in the United States of over $3 million of retirement funds while trading off-exchange forex contracts on the customer’s behalf.
The CFTC Complaint further alleged 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 EagleEye 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 EagleEye lost over $3.24 million by trading forex, according to the Complaint.
The CFTC appreciates the assistance of the Securities and Exchange Commission’s (SEC) Boston office, which filed an action against Liskov and EagleEye on the same day as the CFTC, and the U.K. Financial Services Authority. The SEC’s action against Liskov and EagleEye resulted in sanctions and a jury finding against them (see SEC Litigation Release 22546, Nov. 27, 2012).
CFTC Division of Enforcement staff members responsible for this action are Camille M. Arnold, Joseph Patrick, Susan Gradman, Joseph Konizeski, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: February 25, 2013