CFTC marks progress in its action against FX fraudster Casper Mikkelsen

The United States Commodity Futures Trading Commission (CFTC) has marked progress in its action against Forex fraudster Casper Mikkelsen. This is indicated by an order issued by the New York Southern District Court on November 29, 2021.

The order, seen by FX News Group, shows that Judge John P. Cronan is finally satisfied that the CFTC has effected service o Mikkelsen in compliance with the relevant procedures. Let’s recall that the Judge had nixed the previous attempt by the regulator to secure a default judgment in this case due to deficiencies in the procedure of effecting service on the defendant.

To date, the defendant has not appeared in this action nor answered the Complaint. The Judge also ordered that Mikkelsen will have to appear and show cause at a hearing before the Court on January 24, 2022, at 10:30 a.m., why an order should not be issued granting a default judgment against him.

The CFTC initiated this action on May 18, 2020. The Complaint alleges that Mikkelsen engaged in a fraudulent scheme to solicit and misappropriate money from at least 101 individuals and entities who invested their funds with an alleged company called GNTFX. The CFTC contends that Mikkelsen misappropriated at least $737,000 of client funds for his personal use and that in total purported investors lost at least $1.19 million.

As a result of this conduct, the Complaint alleges three counts of violations of the commodities laws.

The regulator has moved the Court to grant final judgment by default against Casper Mikkelsen, order permanent injunctive relief, and impose a restitution obligation and civil monetary penalty.

The CFTC seeks that Casper Mikkelsen pays a civil monetary penalty of $3,573,860.61. The regulator is also pushing for a Court order directing Mikkelsen to pay $1,191,286.87 in restitution to the victims of the fraudulent FX schemes he operated.