Following our report from back in June that white-label trading platform solution companies Netrios and Red Acre were fined $2.5 million for facilitating CFDs being illegally offered in the US, derivatives markets regulator The Commodity Futures Trading Commission (CFTC) has announced orders filing and settling charges against eight introducing brokers (IBs). The eight IBs – Michael Talento, Anthony Tyler Williams, Quillan Roberto Black, Christopher Williams, Michael Levi Peters, Jordan Taylor Morgan, Lewis Matthew Neal, and Tyler Evan MacKechnie – were named for acting as unregistered associated persons of unregistered foreign introducing brokers.

According to the orders, the IBs engaged in the solicitation of orders for off-exchange leveraged or margined retail foreign currency and retail commodities transactions with U.S. customers who were not eligible contract participants. The respondents solicited those customers without registering as associated persons of the introducing brokers, as required.

Under the orders, the respondents must cease and desist from engaging in their illegal conduct. They also are barred for two years from registering with the Commission in any capacity or acting as a principal, agent, or employee of any CFTC registrant. Each order also recognizes the penalty the respondent owes in a related Securities and Exchange Commission proceeding.

These orders relate to a prior Commission order sanctioning Netrios LP Ltd. and Red Acre Ltd. for facilitating illegal off-exchange commodity transactions with U.S. customers.

The SEC has filed and settled charges against the respondents based on the same underlying conduct.

The CFTC thanks the SEC for its assistance.