Daily fraud update: 3rd June

Judgement reached in case against New York man

A man who stands accused of carrying out foreign exchange fraud has been told he must pay a significant amount in judgement costs.

Eyal Alper, who is from Irvington in New York state, had been pursued by the Commodity Futures Trading Commission (CFTC).

He has been accused of carrying out a fraudulent foreign exchange scheme which scammed individuals for several years.

He supposedly persuaded members of the public to trade foreign exchange contracts – but lied to the traders as he did so.

According to the CFTC, he made “material representations and omissions” when persuading people to join his scheme.

Now, though, he has been hit with consequences after the US District Court for the Southern District of New York granted a permanent injunction against him.

In total, the amount he will need to pay is around $700,000.

In a statement, the CFTC provided more details about the allegations against Alper.

It claimed that he pretended to be a professional trader at a firm in the United Kingdom.

“The order finds that beginning in late 2015 and lasting until October of 2019, Alper fraudulently solicited members of the public to trade futures and foreign currency (forex) contracts through managed accounts”, the CFTC said.

“To solicit customer funds, Alper made material misrepresentations and omissions, including that he was an experienced and successful trader who controlled a large-dollar trading account at a UK-based trading firm.”

The CFTC also alleged that he failed to open up the trading accounts he said he would – and instead used the cash to fund his own lifestyle.

“Additionally, Alper never opened trading accounts for his customers as promised, but instead misappropriated virtually all of the funds provided to him to pay his own personal expenses, including, among other things, international travel, restaurant bills, and car rentals”, it said.

“To conceal his misappropriation, Alper sent false statements to his customers reporting profits in the fictitious accounts and lied to customers about conditions that purportedly prevented him from honoring their withdrawal requests”, the CFTC added.

The sum of approximately $700,000 which he will now have to pay is split into two parts.

There is a restitution figure of $352,901 on the cards, and then an additional civil monetary penalty of the same value.

Alper will also face bans of various sorts, the CFTC added.

“The order also imposes permanent trading and registration bans on Alper and prohibits him from violating provisions of the Commodity Exchange Act and Commission regulations, as charged”, it said.

“The order stems from a CFTC complaint filed on October 24, 2019, which charged Alper with fraud, misappropriation, and engaging in prohibited activities as a commodity trading advisor”, it added.

The CFTC worked alongside an international partner on this case, it said.

It specifically thanked the Financial Conduct Authority, which is based in the UK, for its help.

Chris Lee

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