$100 million fine set in futures fraud case

The commission began cracking down on currency fraud in 2000, after Congress gave it authority over such cases. The $100 million penalty is among the 10 biggest judgments ever ordered in a foreign exchange case, according to commission lawyer Stephen Obie.

IFS had argued that it was brokering currencies in the so- called spot market, and that the commission, which regulates futures markets, had no jurisdiction over it. The court determined the contracts IFS dealt in were in fact illegal futures contracts, setting a precedent that will help the commission as it pursues other fraud cases, Obie said.

Source: South Florida Sun-Sentinel