The US Commodity Futures Trading Commission has filed a notice of intent to revoke the registrations of Linda Faye Harris, CDH Forex Investments and CDH Global Holdings, all of Flower Mound, Texas.
CDH Forex is a registered commodity pool operator and commodity trading advisor; CDH Global is a registered commodity trading advisor; and Harris is registered as an associated person and is the sole principal of CDH Forex. Harris was an associated person and principal of CDH Global.
The notice alleges that Harris, CDH Forex, and CDH Global are subject to statutory disqualification from CFTC registration based on an order of default judgment and permanent injunction entered by the US District Court for the Northern District of Texas on 12 June 2012. The order prohibits defendants from committing further fraud, among other violations. At the hearing held on 12 June Harris appeared and conceded all allegations in the complaint of violations of the Commodity Exchange Act, but contested only the amount of restitution and civil monetary penalty. The court found none of Harris’ arguments credible and entered the order as submitted by the CFTC.
The order contains findings of fact and conclusions of law, which find, in relevant part, 1) that Harris fraudulently solicited at least USD2.2m from customers, out of which total trading losses and misappropriated funds equalled at least USD1,361,897, and 2) made material false statements to pool participants. The order also finds that Harris provided false, fictitious, or fraudulent statements to the National Futures Association (NFA), including falsified trading account statements and falsified bank statements, to hide the ongoing fraud from NFA.