By Bernie Becker - 11/26/12 05:49 PM EST
According to a CFTC release, the complaint, filed in a Washington federal court, alleges that Intrade allowed its American users to make the illegal bets from 2007 until earlier this year.
The commission also says that TEN broke a 2005 order forcing it to stop allowing those sorts of trades, and accused both Intrade and its parent company of filing false records saying that they were only allowing legal trades.
The CFTC is seeking financial penalties as part of the suit, and wants to force Intrade to give up profits received from what it calls the illegal trades.
Intrade was frequently cited in recent months for its odds on the presidential election, and customers can bet on a wide range of subjects on the site.