The CFTC Ends a Scam
The CFTC Ends a Scam
The FPA tries to warn people to carefully check out managed forex accounts before investing. Sometimes the scammers are just a little too convincing. In this case, they convinced investors to part with over $2.2 million.
It started with the NFA shutting down the company last year. Now the CFTC has filed charges.
Here's what the NFA had to say...
NOTICE OF MEMBER RESPONSIBILITY ACTION AND ASSOCIATE RESPONSIBILITY ACTION:
On July 19, 2010, NFA issued a Member Responsibility Action ("MRA") against CDH Global Holdings, LLC ("CDH Global") and CDH Forex Investments, LLC ("CDH Forex") and an Associate Responsibility Action ("ARA") against Linda Faye Harris ("Harris") whereby:
1. Harris, CDH Global and CDH Forex are prohibited from soliciting or accepting any funds from customers or investors, soliciting investments for any commodity pools or other investment vehicles, or placing any trades on behalf of customers, commodity pools, or investors except liquidation or risk reducing trades;
2. Harris, CDH Global and CDH Forex are prohibited from disbursing or transferring any funds of customers, investors, or commodity pools over which they exercise control, or participants in any such commodity pools, without prior approval from NFA; and
3. Harris is required to provide copies of this MRA/ARA via overnight courier to all: a) customers of Harris, CDH Global, CDH Forex and any other entities over which Harris exercises control; and b) banks and other financial institutions in which money is on deposit in the name of Harris, CDH Global and CDH Forex or any other entity over which Harris exercises control.
This action is effective immediately and is deemed necessary to protect customers of Harris, CDH Global and CDH Forex based on the following facts and circumstances: Harris, CDH Global and CDH Forex have provided false and misleading information to NFA, and failed to cooperate with NFA, in its investigation of highly dramatic profit claims made in CDH Global's and CDH Forex's disclosure documents, which appear to be wholly fictitious; they have also provided false and misleading information to NFA, and failed to cooperate with NFA, in its investigation of Harris' claim that CDH Global and CDH Forex had at one time over $18 million under management, which claim appears to be false, as NFA's investigation has shown that they have never had more than approximately $300,000 under management; and Harris and CDH Forex recently filed a new disclosure document for CDH Forex which contained the same false and misleading performance claims described above.
The MRA and ARA will remain in effect until such time as CDH Global, CDH Forex and Harris have demonstrated to the satisfaction of NFA that they are in complete compliance with all NFA Requirements.
On August 18, 2010, a designated Panel of NFA's Hearing Committee issued a Decision after a hearing was held, affirming the MRA. In addition, Harris is required to provide copies of the Decision via overnight carrier to all: a) customers of Harris, CDH Global, CDH Forex and any other entities over which Harris exercises control; and b) banks and other financial institutions in which money is on deposit in the name of Harris, CDH Global and CDH Forex or any other entity which Harris exercises control.
And here's what the CFTC just released on October 25th, 2011...
CFTC Charges Texas Residents Linda Harris, Chance Harris and Two of Their Companies with Solicitation Fraud, Misrepresentation, and Misappropriation in Multi-Million Dollar Forex Scheme
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a complaint in the U.S. District Court for the Northern District of Texas, Dallas Division, charging Linda Faye Harris, Chance Domel Harris, CDH Forex Investments, LLC and CDH Global Holdings, LLC, all of Flower Mound, Texas, with solicitation fraud, making false statements, and misappropriation of investors’ funds in connection with the trading of off-exchange foreign currency (forex) contracts.
The CFTC’s complaint, filed on October 25, 2011, alleges that from August 2008 through July 2010, the defendants fraudulently solicited and accepted funds from the general public to trade pooled investments and managed accounts in off-exchange forex. As a result of defendants’ allegedly fraudulent solicitation, individuals invested over $2.2 million, of which defendants sustained substantial trading losses and misappropriated about $350,000 to pay rent on Harris’s family home, make payments on a leased BMW, and pay credit card bills, according to the complaint.
Defendants also are charged with misrepresenting the profitability of their trading programs in their promotional material and issuing false account statements to investors in the pooled account in order to perpetuate the fraud.
The CFTC complaint also charges Linda Harris with providing false, fictitious, or fraudulent statements to the National Futures Association (NFA), including falsified trading account statements and falsified bank statements, to hide the ongoing fraud from the NFA.
In its continuing litigation, the CFTC seeks a return of ill-gotten gains, restitution to defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the Commodity Exchange Act.
The CFTC appreciates the assistance of the NFA.
CFTC Division of Enforcement staff members responsible for this action are Nathan B. Ploener, Christopher Giglio, Manal Sultan, Lenel Hickson, Stephen J. Obie and Vincent A. McGonagle.
Take time to check out any investment service. Being registered with the NFA isn't enough. Always ask to see verifiable live trading results before placing money into in any managed investment.
If you had money with CDH, the FPA recommends that you contact the CFTC and NFA immediately.
The FPA applauds the efforts of the NFA and CFTC in shutting down this type of scam.
FPA Scam Finding against CDH Forex
CFTC Press Release about CDH
NFA Case Summary for CDH
Review Page for CDHForex.com
Article on how to avoid managed forex fraud