New York Criminal Lawyer Describes Fraud Involving Foreign Currency Trading
Each day, the currency market trades around $5 trillion. This is 100 times more than trades made on the New York Stock Exchange. Forex investors can make millions of dollars from relatively minor fluctuations in the value of one currency against another. However, the U.S. Commodity Futures Trading Commission warns that the Forex market is extremely “volatile and carries substantial risks.”
Some players in the Forex market try to mitigate the risk and maximize profit by trying to manipulate the Forex market. Forex fraud can cross the line into illegal behavior and can lead to criminal charges. If you are accused of participation in a Forex scam, you need to be vigilant about protecting your future and defending yourself in the best way possible.
A New York securities fraud defense attorney at Bukh Law Firm, PLLC understands the rules and regulations governing the Forex market and can provide you with advice, guidance, and dedicated advocacy as you fight the charges against you.
What is Forex and Forex Broker Fraud?
Forex broker fraud is one of the most common types of foreign currency trading fraud. Forex brokers may make dishonest promises or use aggressive and unethical marketing tactics to try to entice potential investors to turn over money to the broker. Brokers may try to rack up commissions at the expense of the client by executing unnecessary trades or encouraging high-risk investments, or may arbitrarily move quoted rates in order to trigger stop orders even when the rates of other brokers have not actually gone to that price. These fraud schemes can often result in brokers making big money while individual investors experience significant financial loss.
The question of whether Forex broker fraud occurred or not can sometimes be difficult to answer. For example, a broker’s intention is difficult to determine and it is not always clear that a broker acted for the purpose of increasing commissions or enriching himself at the expense of clients. The complexity of Forex trading can be a benefit to brokers who are accused of engaging in foreign currency trading fraud, because brokers do not have to prove they are innocent of wrongdoing.
Unless a prosecutor can prove beyond a reasonable doubt that the broker violated the law, conviction should not be possible in a system where the burden of proof is on the prosecutor and not the accused.
Arkady Bukh – a seasoned New York City criminal lawyer – can provide assistance to brokers accused of fraud crimes by helping to plant the seed of doubt in the mind of the jury hearing the case.
While it is sometimes difficult for prosecutors to successfully make a criminal case when Forex broker fraud is suspected, civil claims may also be brought in an effort to impose fines and recover investor funds. The burden of proof is lower in civil cases and while there is no risk of jail time, there is the potential for significant financial damages. Whether you are facing criminal or civil charges for involvement in a Forex fraud scam, it is imperative that you have a lawyer looking out for your interests and fighting for you.
Other Types of Currency Trading Fraud
While Forex broker fraud is common, it is not the only type of foreign currency trading fraud. Forex traders have also been accused of making large purchases or sales moments before daily price fixing occurs in order to artificially push the price up and down. Big banks were able to help companies lock in gains with this technique at the expense of small investors. Market manipulation is a crime, but prosecutors have to prove that the defendant acted intentionally to interfere with customary market pricing.
Like with Forex broker fraud, any type of manipulation of the currency market could be more likely to result in financial consequences rather than jail time. JPMorgan Chase & Co. and Citibank each paid multi-million dollar fines to regulators for rigging key foreign exchange benchmarks in 2014. In total, six firms were required to pay $4.3 billion in fines and penaltiesaccording to Bloomberg.
Getting Legal Help with Forex Scam Defenses
Bukh Law Firm, PLLC can provide representation to brokers, banks, traders, and anyone else accused of involvement in a Forex scam. The goal of your defense lawyer will be to raise doubts about whether your actions were in violation of laws regulating the Forex trading market in order to try to avoid financial consequences and criminal penalties. Your securities fraud attorneys can also help to negotiate a plea deal if you don’t want to take a chance on facing criminal charges in court.
At Bukh Law Firm, our attorneys understand the rules and regulations governing the Forex market and we can assist you if you are accused of breaking those rules. We will fight hard to help you avoid being convicted or suffering financial losses.
Give us a call today to learn more about your legal rights and for assistance responding to serious state or federal criminal charges arising out of allegations of fraudulent behavior.
