The Commodity Futures Trading Commission has brought charges of with fraudulent solicitations and misappropriation of over $3.9 million against Kikit & Mess Investments, LLC and its owner Abner Alejandro Tinoco.
The court has frozen the assets of the defendants and issued a restraining order to preserve the company’s records. The hearing is going to be held on 27 October 2021.
The US watchdog seeks restitution to defrauded investors, disgorgement of ill-gotten, monetary penalties, a ban and a permanent injunction against further violations.
According to the CFTC, since September 2020, the defendants solicited through different channels, including Kikit’s website, over $3.9 million from 61 clients.
The clients gave their money to the defendants to manage them in customized client portfolios for forex and crypto trading. The regulator stated that the defendants did not trade with their clients funds but misappropriated them for Tinoco’s personal benefit or to pay false “profits” they reported to clients in a manner similar to a Ponzi scheme.
Most of the money were used to pay Tinoco’s personal expenses such as chartering a private jet, renting a luxury mansion and cars, leasing a luxury automobile, as well as purchasing real estate.
Last month, the CFTC brought forex fraud charges in a $426K Ponzi Scheme to an individual from Hawaii. The US watchdog charged him with fraudulent solicitation, misappropriation, operation of an unlawful commodity pool, and failure to register with the CFTC.
