A company claiming to be a retail foreign exchange commodity pool, QuantX and its owner Jonathan Parker from Georgia, have been fined over $1 million by the U.S. Commodities Futures Trading Commission (CFTC). The operator of the scheme successfully solicited over $340,000 from at least 8 victims.
In order to convince the clients to entrust him with their funds, the operator of the forex scheme claimed that he will be using the investments to engage in off-exchange retail forex transactions. After receiving the funds between 2010 and 2015 via his company QuantX, Parker instead misappropriated the money.
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None of the funds that were solicited from investors were deposited into the pooled account
The CFTC order requires that Parker and his company pay a civil monetary penalty totaling $680,000 and restitution amounting to $341,500. Both companies will receive permanent trading and registration bans, with Parker actually being a former CFTC registrant. He is the owner, CEO and President of QuantX and as such is fully liable for the activities of the firm.
None of the funds that were solicited from investors were deposited into the pooled account that Parker claimed would be used to execute forex trades. He proceeded to produce false statements to his customers.
The order issued by the CFTC does not warrant the victims of such schemes the repayment of their funds. Many times the wrongdoers do not hold sufficient funds or assets to cover the losses of their clients. Investors are strongly encouraged to conduct thorough due diligence before committing their funds to investment companies.