CFTC Files Settled Administrative Action against Barry Sendach, Joshua Kershner and Forex Global Solutions

In the Matter of Forex Global Solutions, et al., CFTC Docket No. 13-20.  On April 9, 2013, the CFTC announced it filed settled administrative charges against Barry Sendach, Joshua Kershner, and their companies, Forex Global Solutions Inc. and Forex Global Solutions Ltd.  Without admitting or denying the charges, the Respondents all consented to entry of a CFTC Order requiring them to pay a $750,000 civil monetary penalty and imposing permanent trading and registration bans against them.  According to the CFTC Order, Forex Global enticed customers to open off-exchange forex trading accounts and grant discretionary trading authority over those accounts to Forex Global.  Forex Global provided investors with false historical performance returns and did not disclose that performance returns were not accurately calculated.  The CFTC order also finds that Forex Global, Sendach, and Kershner failed to register with the CFTC as required under the CFTC’s new forex rules which require that entities that obtain or exercise discretionary trading authority over forex trading accounts to register with the CFTC as Commodity
Trading Advisors (“CTAs”), and entities that solicit or accept forex trades must be registered as Introducing Brokers (“IBs”).  The rules also require certain persons associated with a CTA or IB to be registered as Associated Persons (APs).  Forex Global violated the rules by acting as a CTA and IB without registering in those capacities.  Sendach and Kershner violated the rules by acting as APs of Forex Global without registering as APs.

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