FC Investment Group LC v. IFX Markets, Ltd.

FC Investment Group LC (FCIG) and Lawrence Eisenberg (plaintiffs) sued in federal court in the District of Columbia (D.C.) alleging that London-based currency broker IFX Markets Ltd. (IFX) (defendant) conspired with since-defunct investment company Titan Global Strategies Ltd. (Titan) to defraud FCIG and Eisenberg of millions of dollars in a currency-investment scheme. The complaint alleged fraud, civil conspiracy, civil aiding and abetting, and violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) in a scheme that IFX purportedly brokered and Titan ran. To support their claim that IFX and Titan agreed to commit fraud, the claimants alleged that a Titan director had testified in a related case that IFX and Titan were business partners, various emails and a fax between their employees confirmed a close working relationship, and employees from both companies worked together to create a PowerPoint presentation given to Eisenberg while he was visiting IFX’s London offices. The claimants alleged the presentation clearly indicated that Titan and IFX established a joint venture to engage in foreign-currency trading, displayed IFX’s logo, discussed Titan’s trading strategies, and named members of IFX’s “Investment Committee.” Finally, the claimants alleged Titan wired $100,000 to IFX and that afterward a Titan employee sent a Titan director a letter outlining further “potential revenue streams” for both companies. IFX moved to dismiss for lack of personal jurisdiction. FCIG and Eisenberg responded that the district court had general personal jurisdiction over IFX based on IFX maintaining a website used in D.C., Titan’s actions within D.C. as IFX’s coconspirator, and a Titan employee regularly calling Eisenberg at his D.C. office, and pursuant to RICO’s nationwide-service-of-process provisions. The district court nonetheless dismissed for lack of personal jurisdiction. FCIG and Eisenberg appealed.