The Commodity Futures Trading Commission (CFTC) has been engaged in negotiations for partial resolution of its action against Timothy Stubbs, involved in fraudulent FX scheme ROFX.net. This becomes clear from documents filed by the CFTC with the Florida Southern District Court on November 30, 2023.

Let’s recall that Stubbs is the sole remaining defendant in this case, as on October 3, 2022, the Clerk entered defaults against nine of the ten defendants pursuant to Fed. R. Civ. P. 55(a)— Notus, Easy Com, GEA, Grovee, Shopostar, Davis, Konovalenko, Shymko, and Skala—for failure to appear, answer, or otherwise plead to the Complaint.

According to the latest Court filings, the CFTC and Defendant Stubbs have been engaging in substantive and good-faith negotiations on terms for a partial resolution of the CFTC’s civil enforcement action against Stubbs by means of a negotiated consent order.

The Parties are working together to expeditiously finalize the proposed consent order terms. CFTC counsel will seek and obtain approval of final negotiated terms from the Commission. Once the Commission authorizes its undersigned counsel, the Parties will submit the Consent Order to the Court for approval, which they anticipate will be done by the end of this year.

Timothy Stubbs is a U.S. citizen who, upon information and belief, is a Certified Public Accountant residing in Brandon, Mississippi and/or the Atlanta, Georgia area. Upon information and belief, Stubbs resides or resided at one or both of the Brandon, Mississippi addresses provided on various Notus and Shopostar corporate filings with both the Oregon Secretary of State and Colorado Secretary of State.

Stubbs represents himself as the manager of Grovee and is the signatory on a Grovee account at Bank of America into which he accepted $153,000 in customer funds during the Relevant Period. Stubbs personally accepted funds from this account and other Corporate Defendants’ bank accounts accepting ROFX customer funds.

Stubbs identified himself as having a “Power of Attorney” over Notus in the documents he filed in April 2015 when he dissolved the Oregon version of Notus. He has never been registered with the CFTC in any capacity.

ROFX is a fictitious, web-based entity that operated via the website www.ROFX.net, which was hosted in the U.S. Upon information and belief, ROFX is neither registered to conduct business in the U.S. nor is it a legally organized collective entity. Although the website contained representations that ROFX purportedly operated from offices in Miami, London, and Hong Kong, ROFX had no offices, no employees, and upon information and belief, was created solely to further Defendants’ fraudulent common enterprise.

ROFX has never been registered with the CFTC in any capacity.