CFTC Files Charges In $58 Million Foreign Currency Fraud

Through a press release, the Commodity Futures Trading Commission (CFTC) announced the filing of an enforcement action against five individuals and five companies with misappropriation and violations of registration in connection with a scheme involving foreign currency exchanges (“forex”.) The CFCT filed the complaint in the U.S. District Court for the Southern District of Florida on January 28, 2022.

The defendants are:

Jase Davis of Brandon, Mississippi
Borys Konovalenko of Ukraine
Anna Shymko of Duluth, Georgia
Alla Skala of Grand Island, New York and/or Fort Erie, Canada
Timothy Stubbs of Brandon, Mississippi and/or Atlanta, Georgia

The defendant companies are:

Notus LLC d/b/a ROFX, a Colorado limited liability company
Easy Com LLC d/b/a ROFX, a New Hampshire limited liability company
Global E-Advantages LLC a/k/aKickmagic LLC d/b/a ROFX, a Delaware limited liability company and New York foreign limited liability company
Grovee LLC d/b/a ROFX, a Delaware limited liability company
Shopostar LLC d/b/a ROFX, aColorado limited liability company

The complaint alleges that the five individuals used their website to solicit more than $58 million from both domestic and international investors for alleged trading of forex through the five companies. This activity occurred between January 2018 through September 2021. Operating through their website, ROFX.net, each of the defendant companies were under the control of the defendants.

More than 1,100 customers deposited monies with the companies through the website, totaling more than $58 million. The defendants made false claims of trading forex with an automated trading bot that allegedly guaranteed against any losses.

The complaint also alleges that the defendants represented themselves as futures commission merchants, soliciting or accepting orders for these forex transactions, or accepting funds related to these transactions while doing business as ROFX without registration with the CFTC.

Once received, the defendants then transferred money to themselves, or to non-trading corporate entities in Poland, Thailand, and other countries.

The CFTC offers warnings and additional information on Forex on its website. The ROFX website and domain name has been seized by The Department of Homeland Security, the US Department of Justice and the National Intellectual Property Rights Coordination Center, (a division of ICE.) The website is no longer functional.

What is Forex (Foreign Currency)?

The abbreviation for foreign currency exchange, it involves changing one currency into another, such as US dollars into Canadian dollars or Great British Pounds (GBP.) Investors who understand markets can trade currencies and profit from the differences in the exchange rate as well as the interest rate differential.

Trading is conducted over the counter and is not centralized. Forex is traded through the world’s largest financial business centers:

Frankfurt
Hong Kong
London
New York
Paris
Singapore
Sydney
Tokyo
Zurich

Therefore, trading is continuously active, 24 hours a day for 5.5 days a week, with frequent market fluctuations.

Did You Invest In Forex With ROFX?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.