Possible Fraud (I hope you're not a customer)


Possible Fraud (I hope your not a customer)

Release: 4892-04
For Release: February 11, 2004


Gibraltar Monetary Corporation, Inc. and Employees Jayson Kline, Charles Fremer, Thomas Clancy, and Edward Johnson Allegedly Lied When Pitching Foreign Currency Options to Customers

Forex Capital Markets, LLC Also Charged

WASHINGTON, D.C.—The U.S. Commodity Futures Trading Commission (CFTC) announced today that it filed a complaint in a Florida federal district court against Gibraltar Monetary Corporation (Gibraltar), a Florida corporation, and Florida residents Jayson Kline of Boca Raton, Florida,

On the same day the complaint was filed, federal district court judge Donald M. Middlebrooks issued a restraining order freezing the assets of Gibraltar, Fremer, Kline, Clancy, and Johnson. The restraining order also prohibits those defendants and FXCM from destroying documents.

The complaint alleges that starting in May 2002, Gibraltar, Kline, Fremer, Clancy and Johnson solicited at least 267 members of the retail public to trade foreign currency (forex) options through FXCM. According to the complaint, Gibraltar used aggressive, high-pressure sales tactics, including: 1) making false promises of large profits, 2) misrepresenting their expertise and track record, and 3) downplaying the risks inherent in trading forex currency option contracts.

The complaint further alleges that Johnson was responsible for the majority of trading decisions made on behalf of Gibraltar’s customers and that he made deceptive and misleading statements to customers and prospective customers regarding the profit ...

Forex Capital Markets, LLC Charged With Liability for Gibraltar’s Conduct

According to the complaint, more than $3 million of Gibraltar’s customer funds were deposited and traded at FXCM. The complaint alleges that, through an exclusive introducing brokerage business relationship in which Gibraltar acted as FXCM’s agent, FXCM paid Gibraltar over $800,000 in commissions in connection with the customers' accounts Gibraltar introduced.

In the continuing litigation, the CFTC is seeking an order enjoining




Experienced member
Funds $3m, charges $0.8m? Wow, that's a bigger cut than MY broker takes - in year one I overtraded, I made about 30% and that's what my broker fees came to - in year 2 I didn't trade and made a small profit thanks to interest payments. I'm planning to lose money when I have time, so I can clean up <g>
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