Another CFTC action: Federal Court in New York
Post# of 72447
(Total Views: 187)
Posted On: 03/10/2018 3:02:25 PM
Re: someconcerns #42924
Another CFTC action:
Quote:
Federal Court in New York Enters Preliminary Injunction Order against Patrick K. McDonnell and His Company CabbageTech, Corp. d/b/a Coin Drop Markets in Connection with Fraudulent Virtual Currency Scheme
Washington - The Commodity Futures Trading Commission (CFTC) today announced that the Honorable Jack B. Weinstein of the U.S. District Court for the Eastern District of New York entered a Preliminary Injunction Order against Defendants Patrick K. McDonnell and CabbageTech, Corp. d/b/a Coin Drop Markets (CDM). The Court’s decision stems from the CFTC’s January 18, 2018 Complaint charging Defendants with fraud and misappropriation in connection with purchases and trading of the virtual currencies Bitcoin and Litecoin (see CFTC Press Release & Complaint 7675-18).
Following a hearing on March 6, 2018, Judge Weinstein found that the CFTC had shown a reasonable likelihood that Defendants will continue to violate the Commodity Exchange Act (CEA). The Court’s Order prohibits the Defendants from engaging in fraud in violation the CEA, requires Defendants to preserve books and records, and requires Defendants to provide expedited discovery.
In its continuing litigation, the CFTC seeks, among other relief, a permanent injunction against future violations of federal commodities laws, restitution to defrauded customers, disgorgement of benefits from violations of the Commodity Exchange Act and CFTC Regulations, civil monetary penalties, and trading bans, as charged.
This case is brought in connection with the CFTC Division of Enforcement Virtual Currency Task Force. The staff members responsible for this case are Christopher Giglio, Alejandra de Urioste, Gates S. Hurand, David Oakland, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan.
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CFTC’s Fraud Advisories
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud. These include, for example, The Customer Advisory: Risks of Virtual Currency Trading, which describes the risks of trading virtual currencies and warns customers about a number of virtual currency exchange scams. Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
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Last Updated: March 6, 2018
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