Additional Information for EminiFx, Inc.

CFTC and USDOJ Charge Owner and Firm, EminiFx, Inc., in Ongoing $59 Million Fraud Scheme

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

On 5/13/2022, the Commodity Futures Trading Commission (CFTC) announced it has filed a civil enforcement action in the U.S. District Court for the Southern District of New York against Eddy Alexandre of Valley Stream, New York, and his company, EminiFX, Inc., of Valley Stream and Manhattan, New York, charging them with fraudulent solicitation and misappropriation in connection with soliciting clients to trade foreign currency exchange (forex), commodity futures contracts, and cryptocurrencies. 

On May 11, 2022, U.S. District Court Judge Valerie E. Caproni signed an ex parte statutory restraining order freezing assets the defendants controlled, preserving records, and appointing a Temporary Receiver. A hearing on the CFTC’s Motion for Preliminary Injunction is scheduled for May 24, 2022.

In its continuing litigation, the CFTC seeks restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA).


Parallel Criminal and Civil Action

On May 12, 2022 in a separate action, the U.S. Attorney’s Office for the Southern District of New York announced the filing of a parallel matter for related conduct.

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CEO Of Cryptocurrency And Forex Trading Platform Charged With Fraudulent Scheme Involving Over $59 Million

On 5/12/2022, Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, announced the unsealing of a Complaint in Manhattan federal court charging EDDY ALEXANDRE, the leader of a purported cryptocurrency and forex trading platform called EminiFX, with commodities fraud and wire fraud offenses.  As alleged, ALEXANDRE solicited more than $59 million in investments from hundreds of individual investors after making false representations in connection with the EminiFX trading platform.  ALEXANDRE, 50, of Valley Stream, New York, was arrested and is charged with one count of commodities fraud, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. 

From in or about September 2021, up to and including in or about May 2022, ALEXANDRE, operated EminiFX, Inc., a purported investment platform that ALEXANDRE founded, and for which he solicited more than $59 million in investments from hundreds of individual investors. ALEXANDRE marketed EminiFX as an investment platform through which investors would earn passive income through automated investments in cryptocurrency and foreign exchange (FOREX) trading. ALEXANDRE offered his investors “guaranteed” high investment returns using new technology that he claimed was secret. Specifically, ALEXANDRE falsely represented to investors that they would double their money within five months of investing by earning a 5% weekly return on their investment using a “Robo-Advisor Assisted account” to conduct trading. ALEXANDRE referred to this technology as his “trade secret” and refused to tell investors what the technology was. Each week EminiFX’s website falsely represented to investors that they had earned at least 5% on their investment, which they could withdraw or re-invest.

In truth and in fact, and as ALEXANDRE well knew, EminiFX did not earn 5% weekly returns for its investors. ALEXANDRE did not even invest the vast majority of investor funds entrusted to him, and ALEXANDRE sustained over $6 million in losses on the limited portion of funds that he did invest, which he did not disclose to his investors. Instead of using investors’ funds as he had promised, ALEXANDRE misdirected at least approximately $14,700,000 to his personal bank account and failed to invest the vast majority of the investors’ funds. 

https://www.justice.gov/usao-sdny/pr/ceo-cryptocurrency-and-forex-trading-platform-charged-fraudulent-scheme-involving-over
https://www.justice.gov/usao-sdny/press-release/file/1505421/download