UPDATE 9/19/13: The CFTC and SEC have filed a notice to the investors providing an update on the status of the case. Click on the following link for a copy of the letter.
On September 18, 2012, the U.S. Commodity Futures Trading Commission filed a complaint in the United States District Court for the Western District of Texas, Austin Division, against Senen Pousa, Investment Intelligence Corporation, dba ProphetMax Managed FX, Joel Friant, Michael Dillard, and Elevation Group, Inc. The Commission’s complaint alleges violations of federal commodities laws relating to a fraudulent scheme that solicited clients to provide Investment Intelligence Corporation with discretionary authority to engage in leveraged foreign currency transactions on their behalf with IB Capital FX, LLC, an offshore counterparty purportedly operating from offices in New Zealand.
Also on September 18, 2012, the Commission filed a Motion for Ex Parte Restraining Order, Order for a Temporary Receiver, and Order to Show Cause Re: Preliminary Injunction in this same lawsuit. In response to the Commission’s complaint and motion, the court entered a Statutory Restraining Order (“Order”) on September 18, 2012 to freeze certain assets and appoint Guy Hohmann as the Receiver for all the assets and records of Senen Pousa, Investment Intelligence Corporation, dba ProphetMax Managed FX and Joel Friant (“Defendants”), including the assets and records of Defendants’ affiliates or subsidiaries. (Collectively, Defendants and their assets and records as described above are referred to as the “ProphetMax Receivership Estate”.)
The court’s Order includes prohibitions and directives on a variety of matters concerning the ProphetMax Receivership Estate. For example, the Order includes the following general provisions:
The Receiver is directed to, among other things, take exclusive custody, control, and possession of all funds, property, and other assets (“Assets”) in the ProphetMax Receivership Estate, and to preserve, hold, and manage such Assets to preserve their value and prevent loss, damage or injury to Defendants’ customers or clients.
Defendants and their agents are restrained and enjoined from transferring, selling, dissipating, or otherwise disposing of any Assets.
Financial institutions are directed to prohibit Defendants or any other person from transferring, selling, dissipating, or otherwise disposing of any Assets. Financial institutions are also directed to assist the Receiver and cooperate in his efforts to identify and obtain such Assets.
Defendants and all other persons or entities are generally prohibited from taking any legal or other action to establish or enforce any claim, right, or interest in the name of Defendants, the Receiver or his agents, or any Asset.
Defendants and all other persons or entities who receive notice of the SRO are restrained and enjoined from directly destroying, mutilating, erasing, altering, concealing or disposing of, in any manner, directly or indirectly, any documents that relate to the business practices or business or personal finances of the Defendant.
Receiver and representatives are immediately allowed to inspect the books, records and other documents of the Defendants and their agents including, but no limited to, electronically stored data, tape recordings and computer discs.
Defendants and their agents, servants, employees, attorneys, and person in active concert or participation with them who receive notice of the SRO shall fully cooperate with the Commission to locate and provide to the Receiver all books and records of Defendants, wherever situated.
The Order also contains a substantial number of other prohibitions and directives concerning the ProphetMax Receivership Estate. To view a copy of the Order, click here.
On September 18, 2012, the court also entered a Consent Order of Permanent Injunction and Other Statutory and Equitable Relief Against Defendants Michael Dillard and Elevation Group, Inc. (“Consent Order”). To view a copy of the Consent Order, click here.
Additional information will be posted on this website as it becomes available.