The former resident of Florida and his Wyoming-based firm have to jointly pay more than $5.9 million in restitution and over $5.9 million as civil penalties for running a fraudulent forex scheme. Last week, the judgment came with the actions of the Commodity Futures Trading Commission (CFTC) against the fraudsters.

Another FX Pool Trading Fraud

According to the official announcement, Darren Robinson operated The QYU Holdings (QYUHI) as a commodity pool operator from around 1 January 2017 to 28 September 2023 but did not register the company with the CFTC, which is mandatory. Robinson was also not registered with the regulator.

“QYUHI failed to comply with CPO regulations,” the CFTC noted in its announcement last Friday, adding that the court order “resolves the CFTC’s enforcement action Robinson and QYUHI.”

Robinson is also facing 11 counts of wire fraud and one count of money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term and is currently a fugitive.

Over Three Dozen Victims

The regulator highlighted that Robinson and QYUHI engaged in a multimillion-dollar fraudulent scheme and accepted about $7.2 million from 38 people to participate in a commodity pool operated by the company. The scheme promised to trade commodity interests, including forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term pairs, on a leveraged, margined, or financed basis with participants who were not eligible contract participants (retail forex) and forex futures contracts.

In reality, the funds were misappropriated and directly deposited into QYUHI’s corporate bank account, which Robinson controlled.

The CFTC pointed out that Robinson used the funds from the pool participants for personal expenses, “including, but not limited to, luxury cruises, airfare, luxury vehicle purchases, real property purchases, credit cards payments, and other daily living expenses.” He even used at least $1.27 million of the funds to pay earlier-in-time participants purported “profits” and/or “redemptions” similar to a Ponzi scheme.

“The CFTC cautions that orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets,” the regulator added. “The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.”