Monex Class Action Lawsuit Investigation
*** Updated as of September 7, 2017 ***
A screenshot of the onex.com website. All references to “Monex” belong to their respective trademark owners.
Axis Legal Counsel is conducting a class action investigation of
MONEX Precious Metals
and potential class action lawsuit
that may allege fraud, securities fraud, commodities fraud, and/or breaches of fiduciary duty in connection with the sale of precious metals, gold, and silver investments.
If you are a former or current customer or client of MONEX seeking information or participation in the potential class action, please register below.
AXIS Legal Counsel is accepting potential claimant registrations for information and/or inclusion in a potential class investigation involving MONEX precious metals in connection with the sale of precious metals products, including gold/silver investments.
If you were or are a customer or client of MONEX and are seeking to be involved in a class action lawsuit against MONEX, submit your contact information below now.
This website is intended to provide information for the Monex Class Action Investigation.
OVERVIEW OF THE COMMODITIES FUTURE TRADING COMMISSION INVESTIGATION AND PROCEEDINGS AGAINST MONEX
Last Updated September 7, 2017:
On September 7, 2017, the Commodities Futures Trading Commission announced an investigation of MONEX in connection with the sale of precious metals.
According to news reports, Monex, a precious metals dealer and investment firm allegedly defrauded thousands of customers of more than $290 million through an illegal scheme in violation of commodities futures trading laws.
The Complaint was brought by the Commodities Futures Trading Commission, which is the government regulatory agency that governs the trading in exchange of commodities and futures.
According to the allegations raised against Monex by CFTC:
- Monex offered an “Atlas” account program that provided clients with the ability to leverage precious metals purchases in gold, silver, platinum, and palladium to retail customers
- Monex permitted customers to borrow money from Monex to purchase more precious metals products
- Apparently “nearly everyone” who placed leveraged trades between 7/2011 and 3/2017 “lost money.”
- The CFTC alleges that tehre were “more than $290 million in customer losses” in that time frame
- Allegedly Monex “employed high pressure sales tactics, systematically downplayed the risks associated with the Atlas program, and falsely promised customers that Monex would act as the customers’ fiduciary and would always act int heir best interests.”
- Monex ran television ads promising clients that Atlas program was a safe and secure way to shield their wealth from inflation
- The owners of Monex, Louis Carabini and his son Michael Carabini, were accused of committing fraud and operating an unlawful leveraged commodity platform not registered with the commission
- CFTC claims that as a result of Monex’s actions, “many customers lost their life savings while Monex and its owners pocketed millions of dollars.”
Customers of Atlas “lost big,” according to news reports. According to the governmental investigation of Monex, about 90% of all leveraged Atlas accounts lost money from July 2011 through the end of March 2017.
CLAIMANT INFORMATIONAL REGISTRATION FORM
This form is provided for individuals who wish to receive more information about the Monex Class Action Investigation or bring claims against Monex process. Please complete this form to receive information or bring claims in the potential class action.
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LEGAL DISCLAIMER: This is an attorney website operated by a law firm and contains advertisements, advertising material, and offers for legal representation to prospective aggrieved victims of Monex in connection with potential legal claims and lawsuits for individual and class action relief. Axis Legal Counsel is conducting a Monex Class Action investigation and provides information to potential class members through this site. We are not and have no connection or affiliation with any governmental agencies governmental regulators, or governmental law enforcement offices.
What are “Leveraged Precious Metals Purchases”?
“Leveraged precious metals purchase” is a term that refers to a practice allowing clients to borrow money (like a loan) to purchase more precious metals than they could normally afford through money they currently have.
Normal Precious Metals Purchase: A customer purchases $100,000 of gold or silver products;
“Leveraged” Precious Metals Purchase: A customer uses their $100,000 to receive a loan for $500,000 to purchase $500,000 of gold/silver products.
Why Was Monex Sued for Leveraged Precious Metals Purchases?
The CFTC alleges that Monex’s leveraged precious metals purchase program were unlawful. According to the CFTC, Monex was charged with “defrauding thousands of retail customers nationwide out of hundreds of millions of dollars, while executing thousands of illegal, off-exchange leveraged commodity transaction.”
The CFTC states that the case against Monex is one of the largest precious metals fraud cases in the history of the Commission. “As alleged, the Defendants defrauded thousands of retail customers—many of whom are elderly—out of hundreds of millions of dollars as part of a multi-year scheme. Fraud in our markets, like that alleged here, undermines confidence, reduces transparency, and harms competition. As this investigation shows, we’ll work tirelessly to detect and prosecute fraud of the sort that’s alleged here,” said James McDonald, the Director of Enforcement of CFTC.
The official CFTC press release is here: http://www.cftc.gov/PressRoom/PressReleases/pr7609-17.
What is Currently Taking Place in the CFTC’s Governmental Proceedings Against Monex?
According to public information provided about the current governmental proceedings:
- The US commodity futures trading commission’s lawsuit was brought against Monex in federal court in Illinois, against: Monex Deposit Company, Monex Credit Company, and Newport Services Corporation, as well as individual claims against Louis Carabini and Michael Carabini.
- The U.S. CFTC is seeking a preliminary injunction to prevent Monex from continuing to market the Atlas program, and prohibit them from trading, soliciting orders, committing fraud, or engaging in business activity relating to contracts or transactions regulated by the CFTC
Is Monex Admitting to Liability?
No. According to news reports, Monex issued a statement denying any allegations of fraud and said that the terms of its trading program and Atlas account was publicly disclosed to purchasers. They also deny that the CFTC has any jurisdiction over them.
Have There been Prior Lawsuits Against Monex?
Yes. News sources report that Monex was previously sued in prior legal proceedings:
- In 2004, Monex was sued in a class action alleging that it misled customers. Monex settled that action agreeing to pay $150,000 to class members.
- In 1974, the U.S. Securities and Exchange Commission alleged that Louis Carabini obtained $1 billion through deceptive sales of silver coins on margin.
Who May Be Eligible to be a Potential Class Member?
If you purchased “Atlas” products from Monex between July 16, 2011 and March 31, 2017, you may be a potential class member in a potential class action against Monex, according to news reports.
- Registered for an Monex “Atlas” account and purchased gold/silver products
- Purchases occurred at any point between July 16, 2011 – March 31, 2017