I can't help but wonder if the Commodity Futures Trading Commission (CFTC) will pursue the principals at FXLQ, a forex dealer that was put into receivership early this year, for fraud. I’m no lawyer, but in reading The Report on Temporary Receiver’s Activities, there certainly appears to be a case for fraud because it appears the principals repeatedly misrepresented the company’s financial condition in its required financial filings. Whether you one of FXLQ's 3,100+ trader clients or not, the receiver's report makes fascinating reading because it paints a very dark and unattractive picture of Robert Gray, a forex insider whose shady business practices and dealings include a number of well known FDMs and FCMs.
A final decision regarding FXLQ's fate in the civil action taken by the CFTC, originally scheduled for March 31, 2008, apparently won't be rendered until June at the very earliest. In a late March court filing, the company's principals were given a 60 day extension to respond to the CFTC's complaints.
Stay tuned.
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