The special master overseeing the Commodity Futures Trading Commission (CFTC)’s fraud case against Traders Global Group Inc. and its CEO, Murtuza Kazmi, has mandated the agency to release exculpatory materials related to a CAD $31.5 million transfer. The CFTC claims the financial entity, operating under the My Forex Funds brand, deceived its clients.
Defense attorneys have sought sanctions against the CFTC, alleging inaccuracies in the investigator’s claims. The legal confrontation centers on whether the US Supreme Court’s Brady rule, which compels prosecutors to disclose exculpatory evidence, applies to civil cases.
The CFTC has resisted the document production, arguing the Brady rule’s relevance in civil proceedings is limited and that this case does not meet those exceptions. However, the special master, retired New Jersey federal judge Jose L. Linares, rejected the agency’s objections, thereby setting a precedent for how exculpatory material may be treated in future civil litigations.
For further details, the full report is available onBloomberg Law.