Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—S.D.N.Y.: Court approves injunction and penalties, denies reconsideration in ‘massive’ Ponzi case, (Jun 17, 2026)
Law Firms Mentioned:Otterbourg PC
Organizations Mentioned:Otterbourg, PC
By Rebecca E. Hoffman, J.D.
Defendant company and its founder were found liable in August 2025 and ordered to pay restitution and disgorgement, but they will now be subject to further obligations and restrictions.
A federal judge in New York June 12 granted the CFTC’s motion for permanent injunction and imposed treble damages against EminiFX, Inc. and its founder Eddy Alexandre, who were found liable for a fraudulent scheme resulting in hundreds of millions in investor losses (CFTC v. Alexandre, No. 22-CV-3822 (S.D.N.Y. June 12, 2026)).
In August 2025, the court granted summary judgment against the defendants for violating the Commodity Exchange Act. Their scheme drew in more than $262 million from tens of thousands of investors and lost over $49 million, while Alexandre misappropriated millions more.
The instant omnibus order permanently enjoins the defendants from registering with the CFTC and from engaging in commodities trading, finding that “[s]uch far-reaching prior illegal conduct easily establishes a prima facie showing that Defendants have violated the CEA and are reasonably likely to do so in the future.”
When a court finds violations of the CEA, it may impose a civil penalty of triple the monetary gain, 7 U.S.C. §13a-1(d)(1)(A). The court granted the CFTC’s request for a treble penalty totaling over $45 million, given that Alexandre acted egregiously and with no remorse, admitted to lying to investors, and that “the consequences flowing from Alexandre’s conduct were devastating.”
The court denied Alexandre’s motions for reconsideration, denied his requests for judicial notice as moot, and blocked his attempts to curb the receiver’s authority. “Alexandre is in no position to raise concerns about whether the Receiver is effectively doing his job,” the court said.
The case is No. 22-CV-3822.
Judge: Caproni, V.
Attorneys: Daniel C. Jordan for the CFTC. Eddy Alexandre, pro se. David Allen Castleman (Otterbourg PC) for David A. Castleman.
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