A federal court filing unsealed late last week confirms earlier reports by WTVY and WTVY.com regarding the FBI’s search of a Dothan home
. A complaint filed by the U.S. Futures Trading Commission alleges a fraudulent currency trading scheme was conducted by companies owned by Nevada businessman Hasam Tayeh. Also named as a defendant is Theodore Hudson, whose Whatley Drive home was search by federal agents last Tuesday.
“Beginning from at least January 2012 and continuing to the present Hasam Tayeh , Dinar Corp., Inc. ) and My Monex, Inc., a Nevada corporation engaged, and are engaging, in a fraudulent scheme involving the offering of agreements, contracts or transactions in off-exchange foreign currency ("forex") on a leveraged, margined, or financed basis to retail customers who were not eligible contract participants ("ECP5") and that do not result in actual delivery of forex within two (2) days of the transaction date(s). Defendants, who have never been registered as required with the Commission, have engaged in more than $8 million of these illegal, off-exchange retail forex transactions,” the complaint alleges.
It continues, “Tayeh created and operates DCI and Monex NV, business entities that he uses to facilitate the Defendants' fraudulent activities and that act as the counterparty(s) in the subject agreements, contracts or transactions in forex. Defendants operate their fraudulent scheme via the Internet through the use of the website www.dinarcorp.com , by offering, and entering into, transactions in forex with non-ECP retail customers that are leveraged, margined or financed by the Defendants, and that result in actual delivery of forex - if at all – within periods of not less than fifteen (15) days and as much as one hundred twenty (120) days following the date of the transaction(s).”
“In furtherance of the fraudulent scheme Tayeh, individually and on behalf of DO and Monex NV, made, and continues to make, material misrepresentations and omit material facts in solicitations to actual and prospective customers via the website, including but not limited to: (a) representing that DO operates a "fully licensed and fully compliant licensed money services business" but failing to disclose that DO has been served with cease and desist orders in the states of Texas and Illinois for operating without required licenses; (b) representing that DO and Monex NV provide the "best price guaranteed" and the "best prices up front all the time" but failing to disclose that the forex transactions they offer to retail customers include significant finance charges; (c) failing to disclose that DO and Monex NV are each operating as a registered foreign exchange dealer ("RFED") without being registered with, the Commission as required; and (d) failing to disclose that Tayeh is acting as an associated person ("AP") of an RFED(s) without being registered with the Commission as required.”
The complaint alleges that Hudson deposited millions of dollars in cashier’s checks and money orders payable to Monex NV. Secretary of State Records show that Hudson formed an Alabama corporation under the Monex name. He later dissolved the corporation after a lawsuit questioning the deposits, and a foreign money transfer was filed.
Hudson, according to the federal complaint, was paid a fee not exceeding five percent for depositing the funds that, according to Trading Commission, were received because of the fraudulent dealing of Tayeh and MonexNV.
The complaint states, “Hudson and Monex AL have received funds that were obtained as a result of Defendants' fraudulent conduct. Hudson and Monex AL have no legitimate entitlement to, or interest in, the funds received from Defendants' fraudulent conduct.”
“Hudson and Monex AL should be required to disgorge the funds they received from Defendants' fraudulent conduct, or the value of those funds that Hudson and/or Monex AL may have subsequently transferred to third parties. By reason of the foregoing, Hudson and Monex AL hold funds in constructive trust for the benefit of customers who were victimized by Defendants' fraudulent scheme."
“The Defendants engaged in the acts and practices described above knowingly or with reckless disregard for the truth of the fraudulent acts, representations and/or omissions,” the suit alleges.
original source: http://www.wtvy.com/news/headlines/FBI-search-linked-to-foreign-currency-allegations--320551922.html?device=tablet&c=y