The CFTC has secured injunctive reduction in opposition to EminiFX and proprietor Eddy Alexandre.

Unsealing of the CFTC’s case at present confirms Alexandre is dealing with each civil and felony fraud expenses.

The CFTC’s case in opposition to Alexandre was filed underneath seal on Could tenth.

Following Alexandre’s arrest on Could eleventh, the CFTC filed a movement requesting their case be unsealed. The courtroom granted the CFTC’s movement on Could twelfth.

Later that very same day the courtroom awarded the CFTC a ex-parte statutory restraining order and injunction in opposition to Alexandre.

Because of this order, an impartial Receiver has been put in command of EminiFX.

The CFTC’s grievance was filed alongside felony proceedings in opposition to Alexandre.

As alleged by the CFTC, Alexandre launched EminiFX on or round September 2021.

Eddy Alexandre, individually and as principal and agent of EminiFX, Inc., has fraudulently solicited, accepted, and pooled no less than $59 million from a whole bunch of members of most of the people to purportedly commerce international foreign money alternate and cryptocurrencies in addition to futures and choices in an funding membership, when in actual fact the Defendants misappropriated the overwhelming majority of participant funds to pay individuals in a Ponzi-like scheme or for Alexandre’s private bills.

The CFTC alleges EminiFX took in $59 million {dollars} from “a whole bunch of individuals”.

BehindMLM printed its EminiFX evaluation again in March, appropriately figuring out it as a Ponzi scheme.

The ruse behind EminiFX was a buying and selling bot. This is among the most typical MLM Ponzi ruses used at present.

As revealed by the CFTC;

Eddy Alexandre solely traded $9 million of the $59 million invested into EminiFX;
Alexandre didn’t commerce foreign exchange and crypto as represented, as a substitute he traded shares, broad-based index futures, together with E-mini S&P 500
futures contracts, E-mini Nasdaq 100 futures contracts, E-mini Russell 2000 futures contracts;
and Dow Futures Mini contracts
of the invested funds he did commerce, Alexandre sustained heavy losses ($6.2 million, representing about 70% of the buying and selling precept);
Alexandre redirected $14.7 million of the $59 million invested into EminiFX to himself;
important further funds have been transferred to Alexandre’s “associates”;
Alexandre lied about EminiFX making individuals millionaires;
Alexandre represented himself to be a millionaire, when in actual fact he was a twice bankrupt charlatan with a damaging net-worth of $122,838 previous to launching EminiFX; and
at no level was Alexandre or EminiFX registered with the CFTC, as was legally required

Some participant funds have been distributed to people, together with no less than $200,000 to at least one particular person. Further participant funds have been donated to charities chosen by Alexandre.

Alexandre additionally used participant funds to pay for enterprise and private bills.

For instance, Alexandre used participant funds to make funds to BMW, Mercedes Benz, Saks Fifth Avenue, flights, luxurious inns and attire, and occupational and bodily remedy.

Alexandre additionally used substantial participant funds to hire and furnish workplace house for EminiFX and to throw “galas” on behalf of EminiFX, which Defendants used to solicit further contributions from individuals.

Alexandre’s conduct constitutes violations of the Commodity Change Act, in addition to CFTC rules.

The CFTC’s grievance particulars six counts of fraud in opposition to EminiFX and Alexandre.

Aid requested by the FTC consists of:

affirmation EminiFX and Alexandre violated the Commodities and Change Act;
a everlasting injunction;
disgorgement;
restitution;
a civil financial penalty; and
authorized prices

On Could twelfth the courtroom granted the CFTC an ex-parte statutory restraining order (SRO). That is the equal of the Short-term Restraining Orders we often see.

The SRO acknowledges the CFTC “has made a correct prima facie displaying” that, by way of EminiFX, Alexandre dedicated fraud.

Because of the SRO, EminiFX and its belongings have been put underneath management of a Short-term Receiver. Eddy Alexandre’s belongings have been frozen.

The SRO and Short-term Receiver are in place till a scheduled preliminary injunction listening to on Could twenty fourth.

On that date, if a preliminary injunction is granted, the EminiFX Short-term Receiver will develop into everlasting.

It will see the method of securing EminiFX belongings (together with potential clawback from EminiFX’s high promoters and earners), with the purpose of eventual distribution to the Ponzi scheme’s victims.

Pending any updates between now and Could twenty fourth, our subsequent CFTC EminiFX case replace will probably be on Could twenty fifth.

I’m conscious scammers related to Eddy Alexandre are nonetheless holding Zoom calls claiming to characterize EminiFX. EminiFX is underneath management of the Short-term Receiver as of Could twelfth.

The appointed EminiFX Short-term Receiver is Dave A. Castleman, a companion of the New York legislation agency Raines Feldman.

Restoration scammers are probably working rife. Contact from anybody relating to EminiFX who isn’t Dave Castleman representing the EminiFX Receivership ought to be discarded.

Within the occasion scammers impersonate Castleman or the EminiFX Short-term Receivership, know that at no level will the Short-term Receivership ask EminiFX victims for cash or make any guarantees or representations relating to fund restoration.

Anybody who tells you they’ll get your EminiFX a refund is mendacity to you. Anybody claiming to characterize EminIFX, on Zoom calls or in any other case, is mendacity to you.

Welcome to the Ponzi end-game.

Having lined MLM fraud for over a decade, I can admire the frustration of victims. Merely put although; I don’t have the endurance for it.

If you wish to rage within the feedback, “pretend information! I put a voodoo curse on your loved ones! and so forth and so forth.”, it’ll be marked as spam.

If you wish to get indignant, take out your frustrations on the scammers who recruited you into EminiFX.

Additionally a reminder to the YouTube promoters who’re nonetheless at it: Recruiting individuals into scams is fraud. It’s simply as unlawful as working the scams.

“I’m not a monetary advisor and this isn’t monetary recommendation” just isn’t a authorized protection in opposition to Securities and Change Act and Commodity Change Act violations.

You run the chance of getting civil regulatory motion filed in opposition to you. In addition to clawback litigation to get well what you’ve stolen.