David Peavler, Regional Director of the SEC’s Fort Worth Regional Office, said, “Federal securities laws impose specific requirements for offering and selling security-based swaps to retail investors in the U.S. These obligations cannot be avoided merely by describing the swap transaction by a different name or funding it with digital currencies.
In a parallel action, First Global Credit also reached a settlement agreement with the Commodity Futures Trading Commission (CFTC) over similar violations.
CFTC Director of Enforcement James McDonald, commented, “This case demonstrates that the CFTC will hold intermediaries accountable if they solicit or accept orders without properly registering with the agency. This case also underscores that the Commission will continue working with our law enforcement and regulatory partners to ensure the integrity of our markets.”
