Court releases foreign currency pallet worth $ 2.5 million. To the CFTC
Washington DC (STL.News) That Commodity Futures Trading Commission today announced that the U.S. after a bench trial the High Court of Middle East Alabama made a final judgment against defendants Husam Tayeh from Illinois and his companies, Dinar Corp., Inc. and My Monex, Inc., both Nevada companies. The court’s ruling orders defendants to pay more than $ 22.6 million. In disgorgement and civil monetary sanctions in the context of Tayeh’s fake foreign exchange (forex) scheme. The court previously found the defendants responsible for violations of the law on the exchange of goods, including fraud.
“This ruling affirms the CFTC’s commitment to work in parallel with our enforcement partners at the federal, state and local levels,” said CFTC Prosecutor General James McDonald. “The CFTC remains committed to working closely with other regulators and criminal authorities to eradicate fraud in our markets. I am grateful Alabama Securities Commission, USA. Attorney’s Office for the Middle District of Alabama, the Federal Bureau of Investigationand local law enforcement for their help in this case. “
“We applaud the CFTC’s work in its successful verdict and we will continue to assist and engage in collaborative enforcement efforts with our federal partners to combat fraudulent practices in the currency and commodities trade,” Alabama said securities Chief Vice Director Amanda Senn.
The judgment in this case stems from a complaint of July 27, 2015 filed by the CFTC. [See CFTC Press Release No. 7206-15] The complaint charged the defendants with fraudulent solicitation of customers to participate in funded retail outlets, primarily involving Iraqi Dinar and Vietnamese Dong, misappropriation of customer funds and various registration violations. The complaint also charged Theodore S. Hudson, II, and his company, My Monex, Inc., an Alabama corporation, which the relief company sued for receiving funds obtained as a result of the defendants’ fraud and which they have not. any legitimate claim. The CFTC’s charges against Hudson and his company were resolved by a statutory and equitable relief permit order filed by the court on February 12, 2018.
On February 6, 2018, the court entered into a ruling on whether the defendants were responsible for each of the four counts alleged in the complaint and imposed a permanent injunction. The defendants accepted liability, but let the issue of disgorgement and civil monetary sanctions be decided by the court. The parties proceeded to trial on August 12, 2019. On February 14, 2020, the U.S. sold District Court Judge Andrew L. Brasher resolved these issues by imposing a final verdict against the defendants, ordering them to pay $ 22,559,153 in arrears and a $ 140,000 civil monetary penalty. The court also entered into a memorandum opinion with conclusions on the facts and conclusions of the law in the case.
The court is releasing a pallet of currency to the CFTC as a set-off against the final judgment
In a separate order, the CFTC court released a pallet of Iraqi dinar and Vietnamese Dong that had been seized by the defendants as a set-off against the final verdict, which was assessed at more than $ 2.5 million USD at the time of the seizure.
Related criminal act
In a related criminal act on June 7, 2016, U.S. The Alabama Middle District Attorney’s Office charged Tayeh with criminal information for a count of wire fraud. [See United States v. Tayeh, Case No. 1:16-cr-213 (M.D. Ala.)]. Tayeh pleaded guilty on June 11, 2016. He was sentenced to one year and one day in prison and ordered to forfeit more than $ 8 million and pay $ 151,517 in restitution to identified victims.
The CFTC appreciates the assistance of the U.S. Middle District Attorney for Alabama, Federal Bureau of Investigation, Alabama Securities Commission, Dothan, Alabama Police Department and Houston County, Alabama Sheriff’s Office.
The department with the staff responsible for enforcement is responsible for this case are Timothy J. Mulreany, Danielle Karst, Patricia Gomersall, Hillary Van Tassel and Paul G. Hayeck.