CFTC Charges Two Florida Residents and Their Firm with $19 Million Futures and Forex Fraud

The Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) announced on Monday that it has charged The W Trade Group LLC, Larry Ramos Mendoza of Miami, Florida, and Joseph Carvajales also of Miami, Florida with fraud and misappropriation of more than $19 million involving futures, forex and options.

The CFTC claimed that W Trade Group LLC, acting under Ramos’ control, operated a long-running scheme from June 2013 through June 2020 that defrauded futures, forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and options investors. The regulator found out that W Trade Group and Ramos misappropriated over $19 million from at least 220 customers. In order to enhance their scheme, W Trade Group and Ramos allegedly sent false account statements to investors electronically indicating purported trading activity and profits, which did not exist in reality.

In addition, the CFTC mentioned that Carvajales, together with W Trade Group and Ramos, solicited customers by falsely guaranteeing returns on investment, falsely promising high returns on investments, and making false representations about the risk associated with the investments.

The agency filed a civil enforcement action against the culprits on Monday at the U.S. District Court for the Southern District of Florida. The commission is seeking restitution for defrauded customers, disgorgement of ill-gotten gains, trading and registration bans, civil monetary penalties, injunctions against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.

Recognizing Commercial Fraud

This is not the first time the CFTC is charging criminals with investment scams. In several cases, the regulator has uncovered investment scams where fraudsters touted digital assets and trading businesses. Last month, the CFTC charged five individuals and five firms for a massive forex scam involving more than $58 million. Also, last month, the agency charged a Florida resident and his investment company with fraud for allegedly defrauding customers in their commodity pool out of $9.8 million. Therefore, investors are urged to be on the lookout for warning signs of investment fraud such as ‘guaranteed’ high investment returns, complicated language and jargon that is difficult to understand, unlicensed sellers, unsolicited offers and pressure to buy right now.