CFTC Charges Dorian Garcia With $17.5m in Fines after FX Ponzi Scheme
- A series of fines combined to form a $17.5m penalty against Garcia for swindling investors in a commodity and FX scheme.
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 Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term, 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.
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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, amongst his most recent levied fines.
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 Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term, 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.
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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, amongst his most recent levied fines.