CFTC charges ACI Capital for Forex Fraud

The U.S. Commodity Futures Trading Commission filed and simultaneously settled charges against Alexandre P. Guimaraes and his company, ACI Capital Group, both of Irvine, Calif., for fraudulently soliciting customers to trade off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term foreign currency contracts (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), issuing hundreds of false monthly account statements to customers to conceal trading losses, and misappropriating a portion of customer funds. Guimaraes also was charged with acting as an unregistered commodity trading advisor.

The CFTC order requires Guimaraes and ACI jointly and severally to pay $428,046.31 in restitution and a $420,000 civil monetary penalty. The order also imposes permanent trading and registration bans against the respondents.

The order finds that, from about February 2010 to approximately February 2011, Guimaraes and ACI fraudulently solicited more than $465,000 from approximately 29 individuals throughout California and Hawaii to trade forex by falsely representing Guimaraes’ experience trading forex and his purportedly consistently profitable returns.

However, beginning in April 2010 and continuing until February 2011, the respondents sustained substantial trading losses for ACI customers and failed to disclose the losses to those customers, according to the order. The respondents concealed the losses by issuing hundreds of false monthly account statements to ACI customers, showing that each customer was earning a profit every month, the order finds.

In addition, Guimaraes misappropriated more than $44,000 of ACI customer funds, using the funds to pay for personal expenses, the order finds. Finally, the order finds that Guimaraes, on behalf of ACI, acted as a CTA for retail forex without registering with the Commission and that ACI is liable for his conduct.