After signalling its intent to
serve Johannes Steynberg through the Hague Convention
last month, the CFTC has now asked for permission to effect alternate service.

If granted, the CFTC will serve Steynberg via a Texas newspaper and the Supreme Court of Texas’ website.

Johannes Steynberg is CEO of
Mirror Trading International
(MTI).

MTI is a
collapsed
Ponzi scheme, believed to be run by Clynton and Cheri Marks (right).

Both Steynberg and the Marks are South African nationals.

Following MTI’s collapse in late 2020,
Steynberg fled to Brazil
.

Brazilian authorities
arrested Steynberg on an international warrant
in December 2021.

Pending extradition Steynberg is believed to have been held in custody at Complexo Prisional de Aparecida de Goiânia, a prison in the Brazilian state of Goiás.

It is expected Steynberg will be eventually extradited to South Africa. A potential spanner in the works is pending criminal charges against Steynberg in the US.

Such to the extent any charges exist, Steynberg’s extradition proceedings have thus far been shrouded in secrecy.

The CFTC’s case against Steynberg alleges MTI was a
$1.7 billion Ponzi scheme
. It should be noted the CFTC’s regulatory case is civil in nature, meaning it has no bearing on Steynberg’s extradition proceedings.

In order for the CFTC’s case against Steynberg to proceed, the regulator needs to execute service. Since the case was filed in July 2022, this has proven problematic.

The CFTC has thus far attempted to serve Steynberg via

email –> no response;

his Brazilian attorneys –> no response;

MTI’s South African attorneys –>
“We stopped representing the Ponzi after it collapsed in 2020”
; and

the Brazilian SEC –>
“We don’t want to get involved until Public Prosecutors are finished reviewing the case”

After initially considering it, the CFTC has now ruled out Hague Convention service because

these processes could take as long as a year to complete, adding considerable delay to these proceedings and denying defrauded participants the relief sought herein.

On September 1st the CFTC moved for permission to serve Steynberg via a notice in the Austin America-Statesman newspaper, and on the Supreme Court of Texas’ website.

While the chance of Steynberg seeing either of these notices is slim to none, if granted and followed through, the court will consider service on Steynberg to be satisfactory.

At time of publication a decision on the CFTC’s motion remains pending.

One other interesting tidbit the CFTC addresses is the potential for South African liquidation proceedings interfering with the CFTC’s case.

This is based on a South African court order, part of liquidation proceedings, staying paralell proceedings against Steynberg.

To the extent there is a South African order staying all proceedings against Steynberg, such an order is not entitled to full faith and credit under the U.S. Constitution and has no force and effect on these proceedings unless the Court recognizes

🤖 Quick Answer

What is the CFTC's new approach to serving Johannes Steynberg?
The CFTC has abandoned Hague Convention service procedures and requested permission for alternate service methods. If approved, the regulator will serve Steynberg via publication in a Texas newspaper and on the Texas Supreme Court's website, streamlining the legal process for the Mirror Trading International case.

Who is Johannes Steynberg and what is his connection to MTI?
Johannes Steynberg is a South African national and CEO of Mirror Trading International, a collapsed Ponzi scheme. Following MTI's collapse in late 2020, Steynberg fled to Brazil, where Brazilian authorities arrested him on an international warrant in December 2021, pending extradition proceedings.

What circumstances led to Steynberg's arrest in Brazil?
After Mirror Trading International collapsed in late 2020, Steynberg fled to

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