On June 13, CFTC charged FCM in $5.5mn precious metal scam.
- Enforcement action against Omega Knight 2, Aviv Michael Hen, and Erez Hen.
Alleged Violations
- For making false statements to sell leveraged, financed, and fully-paid trades.
- 90 customers paid total of $5.5mn in connection with these false transactions.
- Funds paid personal, business expenses and so called “profits” to other clients.
- Omega Knight accepted orders and funds connected with the transactions and
therefore, acted as FCM but did not register with CFTC as an FCM, as required.
Enforcement
- CFTC is in continuing litigation against Omega Knight, Aviv Hen, and Erez Hen.
- Sought payment of ill-gotten gain, penalty, restitution, permanent registration
and trading ban and permanent injunction against further violation of the CEA.
