CFTC Locks Down Pair of Fraudulent Forex Schemes Estimated in Millions

The CFTC has clamped down on two fraudulent forex entities in North Carolina, having siphoned $2.4 million from investors.

The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement Complaint against North Carolina resident Barry C. Taylor, officially charging him with operating a multi-million dollar fraudulent scheme, according to a CFTC statement.

Mr. Taylor was accused of operating his firms, OTC Investments LLC and Forex Currency Trade Advisors, LLC, collectively comprising a duality of fraudulent schemes estimated at $2.4 million in solicited cash. Both firms are unregistered with the CFTC, as is mandated.

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Back on April 22, 2015, North Carolina US Western District Judge, Judge Martin Reidinge entered an emergency restraining Order freezing both OTC Investments LLC and Forex Currency Trade Advisors, LLC’s assets , whilst prohibiting the destruction or concealment of their books and records.

The CFTC Complaint alleges that between the date of August 1, 2011 through the present (and quite possibly longer), both of Taylor’s firms engaged in a fraudulent scheme that solicited more than $2.4 million from approximately 24 members of the public in North Carolina as well as other states in both the US and Canada. The primary channel for these funds was for a commodity pool that traded leveraged or margined retail off-exchange foreign currency (forex) contracts.

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Furthermore, the CFTC complaint alleges that Taylor misappropriated pool participant funds for personal and other business uses, masking his own misappropriation of the funds.

According to the CFTC manifest, the following allegations were also made:

1) OTC Investments LLC and Forex Currency Trade Advisors, LLC were engaged in profitable forex trading despite not being registered pool participants

2) Both OTC Investments LLC and Forex Currency Trade Advisors, LLC traded only a portion of pool participant funds and misappropriated the remainder through a combination of personal expenditures

As a result of the actions and misappropriation, the CFTC is seeking the return of ill-gotten gains, restitution, civil monetary penalties, trading and registration bans, as well as permanent injunctions against further violations of the federal commodities laws.

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