Forex Capital Found Not Liable For Broker's Fraud

Law360, New York (July 21, 2009, 5:17 PM EDT) -- Foreign exchange trading platform Forex Capital Markets LLC does not bare any vicarious liability for a partner company that was found guilty of defrauding investors in 2005, a federal appeals court ruled Tuesday, rejecting an appeal filed by the U.S. Commodity Futures Trading Commission.

A three-judge panel of the U.S. Court of Appeals for the Eleventh Circuit found that because Forex Capital Markets was not in control of Gibraltar Monetary Corp.'s operations when a court ruled that it had defrauded investors, Forex Capital was not liable...
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