The Commodity Futures Trading Commission (CFTC) has moved the Court for an order of preliminary injunction against Timothy Stubbs.
On August 31, 2022, the CFTC filed a three-count Amended Complaint under the Commodity Exchange Act (CEA) and CFTC Regulations against Notus LLC d/b/a ROFX, Easy Com LLC d/b/a ROFX, Global E-Advantages LLC a/k/a Kickmagic LLC d/b/a ROFX (GEA), Grovee LLC d/b/a ROFX, Shopostar LLC d/b/a ROFX, and Jase Davis, Borys Konovalenko, Anna Shymko, Alla Skala, and Stubbs.
As alleged in the Amended Complaint, Defendants have engaged, are engaging, and/or may be about to engage in acts and practices that constitute violations of 7 U.S.C. §§ 6b(a)(2)(A), (C), 6d(a)(1), 9(1) and 17 C.F.R. §§ 5.2(b)(1), (3), and 180.1(a) (2022).
On October 3, 2022, the Clerk entered defaults against nine of the ten defendants pursuant to Fed. R. Civ. P. 55(a)— Notus, Easy Com, GEA, Grovee, Shopostar, Davis, Konovalenko, Shymko, and Skala—for failure to appear, answer, or otherwise plead to the Complaint.
The CFTC now moves for a preliminary injunction against the sole remaining defendant, Stubbs, to protect the Court’s ability to grant full and effective relief by preserving the status quo, pending trial on the merits of this action, specifically:
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freezing Defendant’s assets and ordering transfer and repatriation of misappropriated customer funds to the registry of the Clerk of the Court;
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requiring Defendant to provide the CFTC with a full accounting of his assets, including the disposition of ROFX customers’ funds from receipt until present;
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permitting the CFTC to inspect Defendant’s physical and electronically-held records, including authorizing the copying of the records to allow inspection to occur and requiring Defendant to provide information necessary to locate and access those records;
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prohibiting Defendant from destroying, altering, or disposing of any records; and
- preliminarily enjoining Defendant from further violating the CEA and Regulations as alleged in the Amended Complaint.
Timothy Stubbs is a U.S. citizen who, upon information and belief, is a Certified Public Accountant residing in Brandon, Mississippi and/or the Atlanta, Georgia area. Upon information and belief, Stubbs resides or resided at one or both of the Brandon, Mississippi addresses provided on various Notus and Shopostar corporate filings with both the Oregon Secretary of State and Colorado Secretary of State.
Stubbs represents himself as the manager of Grovee and is the signatory on a Grovee account at Bank of America into which he accepted $153,000 in customer funds during the Relevant Period. Stubbs personally accepted funds from this account and other Corporate Defendants’ bank accounts accepting ROFX customer funds.
Stubbs identified himself as having a “Power of Attorney” over Notus in the documents he filed in April 2015 when he dissolved the Oregon version of Notus. He has never been registered with the CFTC in any capacity.
ROFX is a fictitious, web-based entity that operated via the website www.ROFX.net, which was hosted in the U.S. Upon information and belief, ROFX is neither registered to conduct business in the U.S. nor is it a legally organized collective entity. Although the website contained representations that ROFX purportedly operated from offices in Miami, London, and Hong Kong, ROFX had no offices, no employees, and upon information and belief, was created solely to further Defendants’ fraudulent common enterprise.
ROFX has never been registered with the CFTC in any capacity.
