CFTC pushes for entries of default in lawsuit against ROFX
The United States Commodity Futures Trading Commission (CFTC) is pushing for entries of default against four defendants in a lawsuit against fraudulent Forex scheme ROFX.
According to a motion filed with the Florida Southern District Court, the CFTC requests entry of default against (1) Borys Konovalenko, (2) Easy Com LLC , (3) Global E-Advantages LLC a/k/a Kickmagic LLC, and (4) Grovee LLC. The defendants have failed to answer, plead, or otherwise defend in a timely manner.
Defendant Borys Konovalenko is a Ukrainian citizen and, upon information and belief, currently resides in Ukraine. Konovalenko is, or was, an owner and managing director of Notus and is, or was, an owner and manager of Shopostar.
Konovalenko was a signatory or co-signatory to U.S. bank accounts into which he accepted over $23 million in ROFX customer funds during the Relevant Period, including: (a) a Notus account at Bank of America which accepted $9.3 million in customer funds; (b) two Shopostar accounts at Bank of America which accepted $13.5 million in customer funds; and (c) two Kickmagic accounts at Bank of America which accepted $556,000 in customer funds. Konovalenko personally accepted funds from these accounts during the Relevant Period. He has never been registered with the CFTC in any capacity.
Defendant Easy Com LLC d/b/a ROFX is a New Hampshire limited liability company whose principal office address is 155 Fleet Street, Portsmouth, New Hampshire, 03801. Easy Com is an entity which accepted over $15 million in ROFX customer funds during the Relevant Period. Shymko and Davis are, or were, owners and members of Easy Com. Easy Com has never been registered with the CFTC in any capacity.
Defendant Global E-Advantages LLC a/k/a Kickmagic LLC d/b/a ROFX is a Delaware limited liability company and New York foreign limited liability company with a service of process address at 55 14th Avenue, North Tonawanda, New York, 14120. GEA is an entity which accepted over $4.8 million in ROFX customer funds during the Relevant Period. GEA has never been registered with the CFTC in any capacity.
Defendant Grovee LLC d/b/a ROFX is a Delaware limited liability company whose registered agent’s address is 3422 Old Capitol Trail, Suite 700, Wilmington, Delaware 19808. Grovee is an entity which accepted over $1.2 million in ROFX customer funds during the Relevant Period. Grovee has never been registered with the CFTC in any capacity.
Let’s recall that, in this case, the CFTC alleges that from at least January 2018 through September 2021, Jase Davis, Borys Konovalenko, Anna Shymko, Alla Skala, and Timothy Stubbs, individually and as the controlling persons of the interrelated companies Notus LLC d/b/a ROFX, Easy Com LLC d/b/a ROFX, Global E-Advantages LLC a/k/a Kickmagic LLC d/b/a ROFX, Grovee LLC d/b/a ROFX, and Shopostar LLC d/b/a ROFX, acting through, and/or in conjunction with, the web-based entity ROFX.net, acting as a common enterprise, misappropriated at least $58 million as part of a fraudulent scheme in, and/or in connection with, the offering of leveraged, margined or financed agreements, contracts, or transactions in retail Forex to U.S. and international customers who were not eligible contracts participants (ECPs).
The CFTC seeks civil monetary penalties for each violation of the Act and Regulations, and remedial ancillary relief, including, but not limited to, disgorgement, pre- and post-judgment interest.