Under the new law, controlling persons are financially liable to the same extent for violations committed by the persons they controlled.
Persons includes both individuals and entities.
It alleges these traders had insufficient training and experience in Forex trading, and most accounts suffered substantial losses. The notice charges that traders' qualifications were fraudulently misrepresented and that investors were misled by the failure to disclose significant facts about the program. The notice filing initiates an administrative proceeding in which the Securities Division is seeking a permanent cease and desist order by the Commission, along with restitution to investors and monetary fines. The companies and individuals named as respondents can request a hearing to contest the notice allegations. The Division urges that before making any securities-related investment, the public should check out whether the security and its salesmen are registered with the Commission.