The crypto exchange offered services to US residents without approval from CFTC to operate as a Designated Contract Market (DCM) or a Swap Execution Facility (SEF). The company also operated as a Futures Commission Merchant (FCM) without registration. Moreover, it failed to implement customer information program (CIP) and know-your-customer (KYC ) procedures, as well as…
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The scheme According to the CFTC, Yang and her companies ran the trading scheme between April 2017 and March 2020. The defendants solicited investors and raised funds for the purported purpose of forex trading. The regulator alleges that the defendants made several false representations to the existing and potential pool participants of the scheme. They…
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The CFTC found that the fraudulent actions of the defendants began in September 2020. They fraudulently solicited $7.2 million from 322 clients, promising to use the funds to trade forex and cryptocurrency in individual managed accounts. According to the regulator, Tinoco and his company, Kikit & Mess Investments did not trade their clients’ money as…
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According to the court files, Phelps and Castenir formed Maverick, which operated commodity trading pool. In 2013 the company solicited over $1.2 million in funds from investors. The defendants used false materials claiming that Phelps had an extensive history of investing successfully in commodity trading markets. The defendants also falsely assured investors that there would…
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Details of the fraudulent scheme The CFTC alleges that W Trade Group and Ramos have misappropriated over $19 million from 220 customers. To maintain the scheme, W Trade Group and Ramos sent customers false account statements showing them purported profits and trading activity, when in fact there was none. The other defendant, Carvajales, conjunction with…
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Details of the fraud The US regulator alleges that defendants misappropriated funds from the pool participants and used them to pay personal expenses and to trade commodity futures and options in personal trading accounts. The trading was unprofitable and resulted the pool participants ended up losing money. However, the defendants falsely informed them their investments…
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CFTC alleges that the ROFX website claimed to trade forex using a highly successful automated trading robot with guaranteed coverage of losses. More than 1,100 customers opened trading accounts through the website and deposited their money in the name of one or more of the companies, all controlled by the individual defendants. All of the…
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Background According to the regulator’s complaint, from 2012 to 2018, WorldWideMarkets, along with TAB Networks who performed all of its business activities, participated in forex transactions with 14,000 retail customers. During this period, the companies operated out of New Jersey. However, the CFTC discovered that Plaut organized WorldWideMarkets in the British Virgin Islands in order…
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Charges According to the financial markets watchdog, Bansal and Agarwal engaged in the fraudulent activities for accounts held by Aralia and Vintage. Around 14 April 2020, Bansal led Agarwal to enter orders for Vintage to sell 250 gold futures contracts traded on COMEX at a specific time. Agarwal entered those orders and Bansal entered off-setting…
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The court also found that Capson made misrepresentations about Denari’s activities to the National Futures Association (NFA). The court ordered Capson and Sarkar to payf $250,000 and $166,000, respectively, as penalty. Additionally they and Denari are required to pay restitution of $3,663,282 to victims of their scheme. The court also imposed a permanent injunction prohibiting…
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