U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23258 / May 12, 2015
Securities and Exchange Commission v. FX & Beyond Corporation and Steve H. Karroum, Civil Action No. 1:15-mc-00590 (D.D.C.)
SEC Files Subpoena Enforcement Action Against FX & Beyond and Steve H. Karroum
On May 11, 2015, the Securities and Exchange Commission filed a subpoena enforcement action against Virginia-based FX & Beyond Corporation and its president, Steve H. Karroum. According to the SEC's application, filed in the U.S. District Court for the District of Columbia, the SEC is investigating, among other things, whether Karroum, FX & Beyond, and possibly others violated the anti-fraud or other provisions of the federal securities laws through an investment scheme that has raised nearly $4 million and involves possible foreign currency trading, Ponzi payments, and the misappropriation of investor funds.
As set forth in the application, in January 2015 the SEC issued and served investigative subpoenas that obligated Karroum and FX & Beyond to produce documents and other items to the Commission, and to appear for testimony. Karroum produced only a small number of documents but failed to produce other records and items, and has yet to appear for testimony. FX & Beyond failed to respond to the SEC's subpoena in any way.
The SEC's application seeks a court order directing FX & Beyond and Karroum to show cause why they should not comply with the administrative subpoenas.
The Commission is continuing to conduct its fact-finding inquiry and has not concluded that anyone has violated the securities laws.
See Application for Order to Show Cause and for Order Requiring Compliance with Subpoenas