CFTC Issues $400,000 Penalty For FX Fraud and Misappropriation of Funds
Tuesday,29/10/2013|17:53GMTby
Andrew Saks McLeod
The US Commodity Futures Trading Commission has today announced the citation of three individuals and their associated firms for committing FX fraud and misappropriating customer funds.
The United States government continues to purge the country of perpetrators of fraudulent FX schemes, today having cited three individuals and their associated firms for foreign exchange fraud and misappropriation of customer funds.
The Commodity Futures Trading Commission today confirmed that it has obtained a consent order from the US District Court for the Northern District of Georgia to issue Louis J. Giddens Jr, Anthony W. Dutton and Michael Gomez with a series of penalties amounting to over $400,000.
Within the terms of the order, Mr. Giddens of Fayetteville, Georgia, is required to pay restitution to investors of $29,759.49 and a civil monetary penalty of $100,000, Mr. Dutton, of Peachtree City, Georgia, has been issued with a restitution order for $56,604.35 and a $100,000 civil monetary penalty, and Mr. Gomez of Valrico, Florida has been ordered to pay $68,000 in restitution, in addition to a $75,000 civil monetary penalty.
Excessively Optimistic Projected Returns
In addition to the fiscal penalties, the court’s Order also imposes permanent trading and registration bans against all parties involved, and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act.
The Order, which was entered on October 2, 2013, by U.S. District Judge William S. Duffey, Jr., stems from a CFTC anti-fraud Complaint filed against the Defendants on June 23, 2011.
In issuing the order, the CFTC found that from a period between January and October 2010, Mr. Giddens and Mr. Dutton operated companies under the name of Currency Management Group, LLC and Pinnacle Capital Partners, LLC, respectively, and solicited and accepted funds to trade off-exchange foreign currency contracts from friends and co-workers.
Mr. Giddens and Mr. Dutton then transferred the solicited funds to another entity which they owned and operated named Pinnacle Trade Group, LLC (Pinnacle Trade) to trade FX, according to the court's order.Funds transferred to Pinnacle Trade were either sent to FX trading accounts or to a bank account controlled by Mr. Gomez to trade investor funds. However, the Order finds that not all of investor money was traded in FX, but rather, some funds were retained by Mr. Gomez and Mr. Dutton.
The Order also finds that the parties concerned made statements on websites guaranteeing monthly returns of either five or ten percent from trading FX and that the websites did not disclose any risks associated with trading FX or that past performance does not guarantee future results.
In addition to promising to pay investors fixed returns, the court's order finds that Mr. Giddens and Mr. Dutton executed promissory notes that promised to repay investors their principal sum, plus monthly interest of either five or ten percent and prepared online account statements that showed the current net balance of the promissory notes. The notes did not disclose any risk associated with Forex trading.
The United States government continues to purge the country of perpetrators of fraudulent FX schemes, today having cited three individuals and their associated firms for foreign exchange fraud and misappropriation of customer funds.
The Commodity Futures Trading Commission today confirmed that it has obtained a consent order from the US District Court for the Northern District of Georgia to issue Louis J. Giddens Jr, Anthony W. Dutton and Michael Gomez with a series of penalties amounting to over $400,000.
Within the terms of the order, Mr. Giddens of Fayetteville, Georgia, is required to pay restitution to investors of $29,759.49 and a civil monetary penalty of $100,000, Mr. Dutton, of Peachtree City, Georgia, has been issued with a restitution order for $56,604.35 and a $100,000 civil monetary penalty, and Mr. Gomez of Valrico, Florida has been ordered to pay $68,000 in restitution, in addition to a $75,000 civil monetary penalty.
Excessively Optimistic Projected Returns
In addition to the fiscal penalties, the court’s Order also imposes permanent trading and registration bans against all parties involved, and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act.
The Order, which was entered on October 2, 2013, by U.S. District Judge William S. Duffey, Jr., stems from a CFTC anti-fraud Complaint filed against the Defendants on June 23, 2011.
In issuing the order, the CFTC found that from a period between January and October 2010, Mr. Giddens and Mr. Dutton operated companies under the name of Currency Management Group, LLC and Pinnacle Capital Partners, LLC, respectively, and solicited and accepted funds to trade off-exchange foreign currency contracts from friends and co-workers.
Mr. Giddens and Mr. Dutton then transferred the solicited funds to another entity which they owned and operated named Pinnacle Trade Group, LLC (Pinnacle Trade) to trade FX, according to the court's order.Funds transferred to Pinnacle Trade were either sent to FX trading accounts or to a bank account controlled by Mr. Gomez to trade investor funds. However, the Order finds that not all of investor money was traded in FX, but rather, some funds were retained by Mr. Gomez and Mr. Dutton.
The Order also finds that the parties concerned made statements on websites guaranteeing monthly returns of either five or ten percent from trading FX and that the websites did not disclose any risks associated with trading FX or that past performance does not guarantee future results.
In addition to promising to pay investors fixed returns, the court's order finds that Mr. Giddens and Mr. Dutton executed promissory notes that promised to repay investors their principal sum, plus monthly interest of either five or ten percent and prepared online account statements that showed the current net balance of the promissory notes. The notes did not disclose any risk associated with Forex trading.
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How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
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Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
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Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
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We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
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He closes with a clear message: fraud is scaling, and so must the tools that stop it.
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We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
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