The Southern District Court of New York denied the motion of EminiFX investors to intervene in the lawsuit brought by the Commodity Futures Trading Commission (CFTC).
Judge Valerie E. Caproni signed an order on February 14, 2024, siding with the CFTC as the regulator opposed an effort by a group of EminiFX investors to intervene in its lawsuit.
The judge said the interests of EminiFX investors are adequately represented by the CFTC.
On May 11, 2022, the CFTC filed a lawsuit in this matter against Eddy Alexandre and his company, EminiFX, essentially alleging that Alexandre had run EminiFX as a Ponzi scheme. As part of the request for relief, the CFTC requested compensation to EminiFX participants. On the same date, the Court issued a statutory restraining order which, among other things, froze the assets of the defendants and appointed a receiver to protect and preserve those assets.
The matter remained pending Alexandre’s criminal case, which resulted in a guilty plea and a 108-month prison sentence and large restitution and forfeiture demands. Subsequently, the CFTC and the Defendants have agreed in principle to fully resolve this matter, and the CFTC will submit a proposed consent order upon receipt of the Commission’s approval.