A Puerto Rican FX fund manager has been fined by a United States district court in Puerto Rico for dealing fraudulently in Foreign Exchange trading.
Angel Collazo owner of ACJ Capital Inc was accused by US regulator CFTC of fraudulently trading on behalf of clients, fraudulently soliciting them and making false claims of profitability.
The complaint was filed in May 2011, Angel was accused of soliciting $1.7 million from at least 18 individuals, it was found that Angel was issuing counterfeit statements showing profits when the accounts were in loss.
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The courts have enforced a fine on Collazo and he was ordered to pay $1.5 million in restitution, $551,000 in disgorgement of gains and $1.7 million in civil penalties.
The order also permanently prohibits Collazo and his company from trading on any CFTC-registered entity and from engaging in certain commodity-related activities.
On Dec. 13, Collazo pleaded guilty to wire fraud and money-laundering charges in a related criminal action. Angel’s sentencing is currently scheduled for the first week of June 2012.
The CFTC have been handing out fines since the new leverage regulations were implemented. The US regulators want to ensure there is transparency in the OTC FX market and brokers are required to report the number of clients who are profitable.