The Commodity Futures Trading Commission (CFTC) has announced a significant legal action against Empires Consulting Corp., a Florida-based corporation operating commodity pools under the name EmpiresX.
The U.S. District Court for the Southern District of Florida has entered a consent order imposing a series of penalties and restrictions on Empires Consulting in response to allegations of fraudulent activities.
The consent order, issued today, entails a permanent injunction, restitution, and civil monetary penalties against Empires Consulting.
The court found that Empires Consulting engaged in fraudulent practices, including the operation of unlawfully operated commodity pools without proper registration and the commingling of participant funds.
Federal Court (Credits: Asharq Al-Awsat)
These actions were in violation of the Commodity Exchange Act (CEA) and CFTC regulations. The order serves to resolve the CFTC’s claims against Empires Consulting, which were initially brought forth on June 30, 2022.
As per the terms of the consent order, Empires Consulting is obligated to pay a total of $64,356,794 in fines. This amount includes $32,178,397 allocated for restitution to affected participants and an equal sum imposed as a civil monetary penalty.
Federal Court (Credits: Courthouse News Service)
The consent order imposes a permanent prohibition on Empires Consulting from engaging in any further violations of the CEA and CFTC regulations, as outlined in the charges. This injunction serves as a preventive measure to safeguard against potential future misconduct by the corporation.
The CFTC’s decisive legal action underscores its commitment to upholding the integrity of commodity markets and protecting market participants from fraudulent schemes.
By holding Empires Consulting accountable for its unlawful activities, the CFTC seeks to deter similar misconduct in the future and ensure the fair and transparent operation of commodity pools within the financial industry.
