US CFTC Charges North Carolina Companies in a $1 Million Forex Fraud Case

The US Commodity Futures Trading Commission (CFTC) announced on Friday that it filed a civil enforcement action against Storm Bryant, Elijah Bryant, III, CapitalStorm, LLC, GenerationBlack, LLC and NCome, LLC, for their involvement in a $1.05 million fraudulent 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 scheme. According to the press release, the North Carolina companies and their owners are accused of fraudulent solicitation, misappropriation and registration violations.

The complaint, filed before the US District Court for the Western District of North Carolina, alleges that from March 2018 through to the present, Storm Bryant and Elijah Bryant III, individually and through CapitalStorm LLC, Generationblack LLC and Ncome LLC, have fraudulently asked non-eligible contract participant clients to participate in forex transactions.

“The defendants received approximately $1.05 million from approximately 94 clients during the relevant period, all of which the defendants misappropriated. Approximately $50,870 was sent back to clients as purported Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term ‘profits’ in the nature of a Ponzi scheme,” the CFTC noted. Moreover, the authority clarifies that the firms were not licensed as commodity trading advisors (CTA), incurring an illicit manoeuvre.

More Details on the Case

“When the Bryants successfully induced non-ECP, retail clients to send them funds, the Bryants misappropriated the funds by receiving them or moving them into accounts held by Storm and/or Elijah Bryant in their own names and using the funds to purchase jewelry, rent homes, European travel and fund the Bryants’ personal trading accounts,” the US CFTC added. That said, the watchdog asks for full restitution to victims, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans and a permanent injunction against future violations.

Recently, the US CFTC busted a massive forex and Bitcoin trading racket and brought civil enforcement charges against 8 individuals who were running the scheme. As Finance Magnates reported, they operated a platform called Prime FX and misappropriated over $1.2 million in clients’ funds. The mastermind of the fraudulent scheme is a Nigerian named Uduakobong Udo Inyangudo a/k/a Alexander Uti Bassey.