Allegedly, the defendants promised several customers that they would each have personal accounts at a registered futures commission merchant, through which defendants would trade forex for them. The defendants allegedly lured customers with promises of doubling or tripling their investments within a year through forex trading gains. Defendants allegedly returned approximately USD36, to customers as redemption of principal and purported profits. Because the defendants lost a substantial portion of customer funds in forex trading, the complaint alleges that the redemptions and purported profits came from the principal invested by existing or subsequent customers, thus constituting a Ponzi scheme.
On 9 March , the Honourable Gray H. In the continuing litigation, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties and a permanent injunction prohibiting further violations of the federal commodities laws.
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