CFTC alleges that American Energy Exchange and York Commodities fraudulently solicited customers
The CFTC has filed an enforcement action against American Energy Exchange (AMENX) and York Commodities (York).
The CFTC's complaint, filed action in the US District Court for the Southern District of New York, alleges that AMENX and York, through misrepresentations on their websites, www.amenx.com and www.york-commodities.com, defrauded customers out of over USD 1.39 million.
York allegedly solicited customers to trade options on energy futures contracts with AMENX by duping customers into believing that: (1) AMENX is a futures exchange; (2) York is its broker; and (3) both are located in the United States.
As alleged, York leased the use of a fax number with a (212) New York area code to substantiate its representations as a United States-based company. Likewise, as part of the fraud to deceive customers into believing it was a reputable commodity futures exchange, the complaint alleges that AMENX on its website listed firms as members of AMENX when, in fact, none were members and had never heard of AMENX.
Federal Court issues statutory restraining order
On September 12, 2006, the Honorable Lewis A. Kaplan issued a restraining order prohibiting the destruction of books and records, allowing Commission representative to inspect such records, and ordering defendants to show cause why they should be permitted to continue to fraudulently represent to prospective customers that AMENX is a futures exchange or that York is a broker and are both located in the United States.
In its ongoing action, the CFTC is seeking, among other things, a permanent injunction, repayment of customer losses, and monetary penalties for violations of the Commodity Exchange Act.
Defendant York Commodities is unrelated to the York Commodities located in Scarsdale, New York, and the York Commodities, Inc., located in York, Nebraska.
Investors worldwide should be wary of commodities internet scams
The CFTC warns investors about scams where fraudsters steal the identity of legitimate companies connected to the commodities industry by creating websites with addresses that sound like the name of an existing company. These websites are quite sophisticated in appearance, in part because substantial portions of the content may be copied from websites of existing companies. Customers should conduct due diligence when directed to wire funds to another country.
The following CFTC Division of Enforcement staff members are responsible for this case: David Oakland, Philip Rix, Nathan Ploener, Manal Sultan, Lenel Hickson, Stephen J. Obie, and Richard Wagner.
- Special Reports
- By Location
- Asian Hedge Funds
- BVI Hedge Fund Services
- Bermuda Hedge Fund Services
- Canada Hedge Fund Services
- Cayman Hedge Fund Services
- Channel Islands Stock Exchange
- Future of offshore funds
- Gibraltar Hedge Fund Services
- Guernsey Hedge Fund Services
- Hedge Funds in Germany
- Hong Kong Hedge Fund Services
- Ireland Hedge Fund Services
- Isle of Man Hedge Fund Services
- Jersey Hedge Fund Services
- Jersey Private Equity Services
- Latin American Hedge Funds
- London Hedge Fund Services
- Luxembourg Hedge Fund Services
- Malta Hedge Fund Services
- Middle East Hedge Fund Services
- Singapore Hedge Fund Services
- South African Hedge Fund Services
- Spanish Hedge Funds 2008
- Switzerland Hedge Funds
- US East Coast Hedge Fund Services
- US Hedge Fund Services
- By Subject
- Conference reports
Latest Special Report
- By Location
- How to set up a hedge fund