The CFTC has begun Hague Convention proceedings against EmpiresX fraudsters Emerson Pires and Flavio Goncalves.

The EmpiresX Ponzi scam was co-founded by Pires and Goncalves.

Pires and Goncalves fled to Brazil after realizing they were being probed by US officials.

The CFTC furnished the court with a Status Report on Pires and Goncalves’ service on August 9th.

Two of the Defendants, Pires and Goncalves, are now residing outside the United States, in Brazil, to the best of the CFTC’s knowledge.

The CFTC has initiated serving of process for Defendants Emerson Pires and Flavio Goncalves under the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (“Hague Convention”).

On August 5, 2022, the CFTC secured certified translations (into Portuguese) of the Complaint, Civil Cover Sheet, and Summons, as required by the Hague Convention.

On August 9, 2022, the CFTC directed that all documentation required for Hague Convention service be submitted to the Brazilian Central Authority, the Department of Assets Recovery, and International Legal Cooperation.

The Central Authority estimates that serving of papers under the Hague Convention can take between 9 and 18 months.

The CFTC’s other two defendants, Joshua Nicholas and Empires Consulting Corp, have previously been served.

US officials have found it difficult to serve service on fraudsters who fled to Brazil. The CFTC stated earlier this month that it had also commenced Hague Convention service against Johannes Steynberg.

Mirror Trading International, a $1.7 billion dollar Ponzi fraud, was run by Steynberg. Steynberg, unlike Pires and Goncalves, is not a Brazilian citizen.

Parallel civil fraud procedures have been filed by the SEC against Pires and Goncalves. They have also been charged with similar criminal fraud.

Updated on August 24, 2022 – The SEC has also acknowledged that it has begun Hague Convention service against Pires and Goncalves.

According to the SEC’s complaint on August 16th in their EmpiresX lawsuit;

The SEC has started the process of serving them in accordance with the Hague Convention, and has already delivered the necessary service documents to the Brazilian Ministry of Justice.

On July 29, 2022, the relevant paperwork were handed to the Brazilian regulators in charge of serving those defendants.

This really comes a week before the start of the CFTC Hague Convention.

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