CFTC charges NY firm with fraud

WASHINGTON, Feb. 18 (UPI) -- The U.S. Commodity Futures Trading Commission Friday filed a fraud complaint against Richmond Global Entities of Staten Island, N.Y.

The CFTC said the complaint filed in District Court of New York alleges the company fraudulently solicited at least $3.5 million from at least 160 customers for the purpose of trading foreign exchange contracts starting in December 2001.

It alleges false promises of high returns were made and the company falsely represented risks associated with foreign exchange trading.

The CFTC is seeking fines against the company and also the return of funds to customers.

"One of the objectives of the commission remains the vigorous prosecution of retail forex fraud," CFTC Acting Chairman Sharon Brown-Hruska said.