WASHINGTON - The Commodity Futures Trading Commission today announced an order filing and settling charges against Netrios LP Ltd. and Red Acre Ltd. for facilitating illegal off-exchange leveraged or margined retail commodity transactions involving U.S. customers who were not eligible contract participants.

Under the order, Netrios must pay a $1.75 million civil monetary penalty, and Red Acre must pay a $750,000 civil monetary penalty. Both firms must also cease and desist from the unlawful conduct.

The order finds Netrios sold a specialized service that provided essential functions used to offer and sell leveraged or margined retail commodities through offshore, off-exchange branded platforms that solicited U.S. customers without regard for whether those customers met eligible contract participant requirements. Red Acre intentionally helped Netrios by providing customer and other support. In doing so, Netrios carried out activities that lawfully could only be performed on a CFTC-registered exchange, and Red Acre aided and abetted Netrios's illegal activities.

Today the Securities and Exchange Commission announced the filing and settling of charges against Netrios and Red Acre based on the same underlying conduct.

The CFTC thanks the SEC, the Central Bank of Ireland, the Financial Services Authority of Seychelles, and the Malta Financial Services Authority for their assistance.