Today, the Commodity Futures Trading Commission (CFTC) filed a Notice of Intent to Suspend, Revoke or Restrict the registrations of two Commodity Trading Advisors of Waxahachie , Texas namely: M25 Investments, Inc. (M25) and M37 Investments, LLC (M37).
On the basis of the federal court’s entry of a permanent injunction order, M25 and M37 may not qualify from being registered under the Commodity Exchange Act (CEA). The notice of the CFTC made on February 23, 2011, states that a consent order of permanent injunction for M25 and M37 has already been entered by the US District Court for the Northern District of Texas based on an anti-fraud action filed by the CFTC on September 29, 2009 in CFTC vs. M25 Investments .,Inc., et al.
Moreover, the order has stated that M25 and M37 have illegally solicited clients to leverage an off-exchange foreign currency (Forex) transactions. Both investment traders participated in a similar plan to solicit clients and dupe them with bogus account statements that projected a lucrative ROI.
The M25 and M37 have been enjoined from breaching the CEA and from registering with the CFTC. M25 and M37 were also made to pay $7,404,036.56 in restitution, plus a civil monetary pay amounting to $7.1 million.