The CFTC has begun the process of serving documents on EmpiresX fraudsters Emerson Pires and Flavio Goncalves under the Hague Convention.
empires was a Ponzi scam created by Pires and Goncalves.
Once Pires and Goncalves found out they were being probed by US officials, they promptly left for Brazil.
The CFTC filed a Status Report with the court on August 9 about the status of Pires’ and Goncalves’ service.
The CFTC believes that two of the defendants, Pires and Goncalves, are presently residing in Brazil.
The CFTC has commenced serving documents on Defendants Emerson Pires and Flavio Goncalves by 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 received certified translations (into Portuguese) of the Complaint, Civil Cover Sheet, and Summons by the Hague Convention on the Law of Treaties.
The CFTC arranged for the Brazilian Central Authority, the Department of Assets Recovery, and International Legal Cooperation, to receive all papers required for service under the Hague Convention on August 9, 2022.
Hague Convention document service, as estimated by the Central Authority, can take anywhere from 9 months and 18 months.
The CFTC has previously served process on Joshua Nicholas and Empires Consulting Corp, the other two defendants in the case.
It has been challenging for US officials to serve warrants on fraudsters who fled to Brazil. The CFTC said earlier this month that service under the Hague Convention had been started against Johannes Steynberg.
Steynberg headed up Mirror Trading International, a Ponzi scam that bilked investors out of $1.7 billion. It’s important to note that Steynberg is not a Brazilian citizen like Pires and Goncalves.
Civil fraud actions have been opened by the SEC against both Pires and Goncalves. Related criminal fraud allegations have also been brought against them.