August 29, 2014
CFTC Charges California Resident Ralph Metters with Forex Fraud
Federal court issues emergency order freezing assets and protecting books and records of Metters
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Manuel L. Real of the U.S. District Court for the Central District of California entered on August 27, 2014 an emergency Order freezing and preserving assets under the control of Defendant Ralph Metters of Los Angeles, California. The court’s Order also prohibits Metters from destroying books and records and grants the CFTC immediate access to the Defendant’s records. Metters has never been registered with the CFTC.
The Order arises out of a civil enforcement Complaint filed by the CFTC on August 20, 2014, charging Metters, who uses the alias Malachai “Moe” Levy and operated Destiny FX, LLC, with fraudulently soliciting $500,000 from a member of the public in connection with off-exchange foreign currency (forex) transactions beginning in October 2013. Although Metters told his customer that the funds would be used to generate profits in a forex trading account, Metters in fact misappropriated at least $385,000 of the funds, according to the Complaint.
In its continuing litigation, the CFTC seeks disgorgement of ill-gotten gains, restitution, a civil monetary penalty, a permanent registration and trading ban, and a permanent injunction from future violations of federal commodities laws, as charged.
The CFTC appreciates the assistance of the United States Attorney’s Office for the Central District of California and the Federal Bureau of Investigation in this matter.
CFTC Division of Enforcement staff members responsible for this case are Jennifer E. Smiley, Mary Beth Spear, Ava Gould, Scott Williamson, and Rosemary Hollinger.
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CFTC’s Foreign Currency (Forex) Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Last Updated: August 29, 2014