CFGTrader (Forefront Investments Corporation)

UPDATE (April 25, 2007):

To Certain Former Customers of ForeFront Investments Corp. d/b/a CFG Trader ("CFG Trader"):

The Receiver has been contacted by some former customers of CFG Trader suggesting that their respective account balances on the books at the time of the transfer to I-Trade FX are less than they should be due to the forced liquidation mandated by the NFA.  At this time, the Receiver is not in a position to make a determination as to the validity of such claims.  Regardless of whether this type of claim is valid, your claim is only a claim against CFG Trader.  If you have a claim for damages due to premature forced liquidation of positions it is not a claim that I-trade FX agreed to pay. I-Trade is only responsible for making sure that the amount of your account balance at CFG Trader AFTER the forced liquidation is made available to you immediately for trading or as a cash refund, all of which should have be done by the date of this update.  If you feel that your account balance was less than it should have been as a result of the forced liquidation, you must (i) state your complaint/claim in writing, including but not limited to all relevant information such as dates, amounts, measure of damages, and documents to support, and (ii) send it to:

Bruce H. Matson, Esq.
LeClair Ryan, A Professional Corporation
Riverfront Plaza, East Tower
P.O. Box 2499
Richmond, Virginia 23218-2499

The Receiver makes no representations or assurances as to the viability of this type of claim, but your submission will be examined and the Receiver will respond to you accordingly.  The Receiver will need at least 30 days to investigate these claims.  If the Court accepts these forced liquidation claims as valid, it is likely to be a number of months before any payment might be made.

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UPDATE (April 16, 2007):

NOTICE OF ASSIGNMENT OF CFG TRADER ACCOUNTS

PLEASE TAKE NOTICE that on March 20, 2007, the U.S. Commodity Futures Trading Commission (the “Commission”) filed a Complaint (the “Complaint”) in the United States District Court for the Eastern District of Virginia, Richmond Division (the “Court”), against ForeFront Investments Corp. d/b/a CFG Trader (“CFG”) seeking injunctive and other equitable relief and a civil monetary penalty. The primary basis for the Complaint is that CFG failed to maintain the appropriate minimum amount of adjusted net capital as required by Section 4f(b) of the Commodity Exchange Act and Commission Regulation 1.17(a)(1).

PLEASE TAKE FURTHER NOTICE that pursuant to the Court’s order dated March 27, 2007 (the “Receiver Order”), this Court appointed Bruce H. Matson to serve as the temporary receiver for the assets of CFG (the “Receiver”).

PLEASE TAKE FURTHER NOTICE that pursuant to the Court’s order dated April 10, 2007 (the “Sale Order”), CFG sold all of its customer accounts (the “Accounts”) to I-Trade FX, LLC.

FOREFRONT INVESTMENTS CORP. D/B/A CFG TRADER HEREBY SERVES NOTICE OF ITS INTENT TO TRANSFER ALL OF IT CUSTOMER ACCOUNTS TO I-TRADE FX, LLC.

  • As of March 21, 2007, CFG liquidated your position and ceased servicing your Account.
  • CFG is transferring the Accounts in order to ensure that you may retain one hundred percent (100%) of your Account balance as of March 21, 2007.
  • Immediately after the transfer of your Account to I-Trade FX, LLC, you will be able to withdraw your funds and/or trade in your Account .
  • Should you have any questions or wish to liquidate your position, you should contact I-Trade FX, LLC using the following contact information:

I-Trade FX, LLC
296 Primera Boulevard
Suite 230
Lake Mary, Florida 32746
(407) 585-0600

Questions concerning the Receivership may be directed as follows:

Bruce H. Matson, Esq., Receiver for ForeFront Investments Corp. d/b/a CFG Trader
LeClair Ryan, A Professional Corporation
Riverfront Plaza, East Tower
P.O. Box 2499
Richmond, Virginia 23218-2499
bruce.matson@leclairryan.com
(804) 343-4090

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UPDATE (April 06, 2007):

"The Receiver has signed an agreement to sell substantially all of the assets of Forefront Investments Corp., d/b/a CFG Trader to I-Trade FX, LLC.  The United States District Court will hold a hearing at 10:00 a.m. on Tuesday, April 10, 2007 to consider approval of the sale.  The hearing will be held before the Honorable Robert E. Payne in Lewis F. Powell, Jr. Courthouse at 1000 East Main Street in Richmond, Virginia.  If approved, the Receiver will transfer all CFG Trader customer accounts (and certain related assets) to I-Trade FX, which will restore to all customers the value of their accounts at CFG Trader at the time that all positions were liquidated on March 21, 2007 pursuant to the order of the National Futures Association.  If approved, the parties expect to close the transaction immediately after the hearing.  Customers will receive further information directly from the Receiver and I-Trade FX after the hearing, including procedures for recovering their investment or establishing a new account with I-Trade FX."

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UPDATE (April 4, 2007):

 
The Receiver continues to work to verify the amount of customer liabilities and any shortfall that may exist in the customer accounts.  In addition, the Receiver is actively working to try to sell and assign to a new FCM the CFG Trader customer and related relationships as well as the other assets of the company.  The Receiver anticipates finalizing an agreement to transfer customer relationships this week with a closing and actual transfer to take place next week.  Although no agreement has been finalized and no guaranties can be made, the Receiver hopes and expects that this transaction will restore all customer funds in full.  The Receiver will endeavor to update this website as soon as more information becomes available, but not later than April 11, 2007.
 
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On March 20, 2007, a Complaint was filed by the Commodity Futures Trading Commission against Forefront Investments Corp., d/b/a CFG Trader. On March 27, 2007, the CFTC and Forefront Investments entered into a Consent Order before the Honorable Robert Payne of the United States District Court for the Eastern District of Virginia. A copy of the Consent Order can be viewed on this website. As part of the Consent Order, the Court appointed a Receiver over the Company and its assests. The Receiver is presently attempting to determine the extent of the liabilities of the company and the assests that are available to make payment to customers and creditors. The goal of this process is to protect customer's monies and to provide maximum coverage to all affected parties as soon as possible. The Receiver will update this information on Wednesday.

Complaint 

Consent Order

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Other Documentation:
Please click and read the NFA document below

MRA - Forefront Investments Corp (.PDF)

 

Clients will be contacted by email and through information posted on www.cfgtrader.com upon announcements.