The Commodity Futures Trading Commission (CFTC) has marked progress in its action against fraudulent FX scheme ForexNPower and the individuals linked to it. This becomes clear from a status report filed with the New York Eastern District Court on May 26, 2022.

The report, seen by FX News Group, reveals that there is some progress of settlement discussions with defendant Tae Hung Kang a/k/a Kevin Kang.

On May 18, 2022, the CFTC sent Mr. Kang, via U.S. Postal Service, Certified Mail, a proposed Consent Order for Permanent Injunction, Restitution, and Other Equitable Relief Against Defendant Tae Hung Kang for his review. On May 25, 2022, the attorney confirmed that Mr. Kang has received the Consent Order, that he will sign it and return it to the CFTC.

Upon receipt, the CFTC counsel will submit the Consent Order to the Commission with its recommendation.

Let’s recall that, in December 2021, the CFTC said it was open to discussing a settlement with the defendants in this case.

Let’s recall that the CFTC filed an enforcement action against Safety Capital Management, Inc. (Safety) and GNS Capital, Inc. (GNS), both doing business as FOREXNPOWER, John Won, a controlling person of GNS, and Sungmi Kang, a controlling person of both Safety and GNS, back in September 2015. The defendants were charged with fraudulent solicitation of over $1.5 million from customers to trade off-exchange Forex and misappropriation of over $622,000 of customer funds. Tae Hung Kang (a/k/a Kevin Kang), an officer and agent of Safety and GNS, is charged with fraudulent solicitation of customers.

The CFTC Complaint alleges that from at least October 2010 through December 2013, Safety and GNS fraudulently solicited and accepted over $1.5 million from over 90 retail customers to participate in a forex commodity pool and/or to open forex trading accounts managed by Safety or GNS.