The US Commodity Futures Trading Commission (CFTC), one of the most active regulatory authorities in the country, has announced the final verdict by a US District Court in Florida that required Dorian Garcia and his companies pay a restitution sum of over $5.0 million after conducting a Ponzi scheme, per a CFTC manifest.
Garcia and his companies, e.g. DG Wealth Management, Macroquantum Capital LLC, UKUSA Currency Fund, and DG Wealth’s successor, Quanttra LP, were obliged to pay $5,051,052 after defrauding investors in an ongoing market abuse scheme between 2010 to 2015. Furthermore, Garcia and his entities were also on the hook for a $7.5 million civil monetary penalty and $4,948,571 in ill-gotten gains for a total of approximately $17.5 million.
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FX Scheme Dupes Investors
The nature of the Ponzi scheme centered on foreign exchange (FX) and commodity trading pools and was also engaged in the misappropriation of customer funds, false account statements, and a litany of CFTC violations. The recent fines against Garcia follow earlier findings in 2015 as well as a sanction last month, which saw no sign of improvement or explanation for its fraudulent behavior.
In total, Garcia managed to swindle upwards of $7.3 million from at least ninety-five investors, likely more, as well as a further $3.3 million that was allocated to his private account to reconcile personal and business expenses.
Garcia had been hoodwinking his clients and investors by saying that he was registered with the CFTC whilst operating under the mantle of a licensed brokerage. Back in 2015, Garcia also pleaded guilty to wire fraud, earning a prison term of over six years, subsequently paving the way for upwards of $5.3 million in restitution payments, amongst his most recent levied fines.