As we mention in our post on February 18th, the U.S. Commodity Futures Trading Commission (“CFTC”) filed 14 enforcement actions alleging defendants acted as an retail foreign exchange dealer (“RFED”) or introducing broker without registering with the CFTC. At the time of that post, none of the 14 defendants had yet answered the complaints against them. Two weeks later, that has not changed.
However, of the deadlines to file Answers in these cases that are apparent from public records, these deadlines have all passed. In five of these cases, the courts have entered a default against GIGFX, LLC; Prime Forex, LLC; Kingdom Forex Trading and Futures, Ltd.; EuroForex Development LLC; and ForInvest, Inc.
In one case worth noting, against InovaTrade, Inc., the agent sent by the CFTC to serve the summons and complaint upon the defendant was unable to do so. The agent submitted an affidavit to the court stating that
On January 27, 2011, [she] offered to hand Michael Alcocer, CEO of InovaTrade, Inc., a UPS box from the U.S. Commodity Futures Trading Commission addressed to InovaTrade, Inc. Mr. Alcocer refused to receive the UPS box…Mr. Alcocer terminated InovaTrade, Inc.’s virtual office space contract for the space at 1395 Brickell Ave., Suite 800, Miami, Florida on January 27, 201, after refusing the UPS package.
Despite the seeming efforts to avoid service of process, the CFTC has other methods to effect service, such as serving the secretary of state or any other method the Court will allow. Having this conduct on the record, however, probably will not look good for the defendant once the matter goes before the judge.
More updates to follow as we continue to cover these cases.