In a significant legal update surrounding My Forex Fund (MFF), the recent court decision has brought both victories and challenges for the company amid the ongoing case filed by the Commodity Futures Trading Commission (CFTC). Here’s a comprehensive breakdown of the latest developments in the MFF court case:
Background:
Late August marked the initiation of a legal battle as the CFTC filed a complaint against My Forex Fund (MFF), its CEO, and associated entities. The complaint alleged fraudulent activities, specifically focusing on deceptive practices related to leveraged retail foreign exchange and leveraged retail commodity transactions.
Court Decision Overview:
Fast forward to Tuesday night, the New Jersey court partially granted MFF’s request, ordering the release and return of a substantial portion of assets belonging to MFF’s Founder and CEO, Murtuza Kazmi. Valued at approximately $100 million, these assets will see a partial thaw, with $12.08 million remaining frozen.
However, despite this partial victory, the court upheld the ‘prima facie’ evidence presented by the CFTC, supporting charges against MFF and its CEO. ‘Prima facie’ evidence, accepted as correct unless proven otherwise, underscores the complexity of the legal proceedings.
Cap on Frozen Assets:
Judge Zahid Quraishi determined the new amount of frozen assets by placing a cap on MFF’s profits associated with the 8 percent of customers who had ‘live accounts.’ The proprietary trading platform, My Forex Fund, generated approximately $310 million in fees from all customers, paying out around $159 million. The court’s decision reflects a nuanced approach, taking into account specific customer accounts in the profit calculation.
Receiver Decision:
In a noteworthy development, the court decided to discharge the current temporary receiver and ruled against appointing a new one. Judge Quraishi expressed confidence in MFF’s cooperation, stating, “the Court trusts that no receiver is necessary to effectuate the Court’s order.”
Moving Forward:
The legal proceedings have highlighted the commitment of the CFTC to combat retail fraud in the markets. As the case progresses, we will continue to provide updates on this dynamic situation. Stay tuned for further insights into the MFF court case as it unfolds, and be sure to check back for the latest developments in this evolving legal landscape.