ATTORNEY NEWSLETTER
CFTC Alleges Fraud On Investors
Agency Alleges Fraudulent Solicitation And Registration
Investor Money Allegedly Spent By Fund Promoter
The U.S. Commodities Futures Trading Commission (CFTC) oversees trading in commodities, options, futures and currencies. See Commodity Exchange Act, 7 U.S.C. § 1 et seq. and 17 C.F.R. Part 1 et seq. The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), Pub. L. 111-203, established a whistleblower program within the CFTC to encourage individuals with information of trading fraud to report the fraud to the agency and potentially receive a reward for that information if the agency successfully recovers from the alleged wrongdoer. See 7 U.S.C. § 26 et seq. Fraudulent trading can occur in equities trading or trading in futures, options, commodities and currencies including virtual or digital currencies. If you have information of any form of commodities or options trading fraud call Evans Law Firm, Inc. We can assemble your information in the form required by the CFTC for investigation and possibly a reward if the agency completes a successful enforcement action including recovery of civil penalties or disgorgement of illegal gains. If you have information of any form of commodities, options or virtual currency trading fraud, call us today at (415)441-8669 or toll free at (888)503-8267.
Allegations Against Options Trading Fun Operator
According to a recent CFTC press release, [1] from 2017- 2018 and investment firm and its owner unlawfully solicited and accepted $294,545 from 70 members of the public to trade binary options contracts on the North American Derivatives Exchange (Nadex). The CFTC found that the firm and its owner defrauded those customers, and operated the fund as an unregistered commodity pool. According to the CFTC, the fund operator misrepresented that for customer deposits between $500 and $5,000, he would pool those customers’ funds into a single trading account at Nadex, and would use those funds to trade binary options on the customers’ behalf. The order also found that the fund operator also misrepresented that it would deposit each customer payment of $5,000 or more into separate customer trading accounts at Nadex, and would manage and trade binary options individually on behalf of those customers who had deposited more with the firm. However, rather than trade customer funds as promised, the CFTC determined that the operator instead misappropriated most, if not all of the funds for his personal benefit, including spending tens of thousands of dollars on jewelry, purchases at Apple stores, and Toys “R” Us gift cards.
Covered Action Rewards
Individuals who provide the CFTC with information of this or any other form of trading fraud are entitled to a reward. A CFTC case begins with a TCR (“Tip, Complaint, or Referral”) Form filed with the Commission. TCRs are also used to begin a whistleblower case before the U.S. Securities and Exchange Commission for other securities law violations. Both the SEC and CFTC encourage whistleblowers seek counsel to assist them in the process of submitting a TCR form. This will ensure they take the proper steps to remain anonymous and qualify for a whistleblower award. Once the CFTC determines a fine or obtains any recovery based on the information contained in the TCR then submit a Form WB-APP with the CFTC to claim a reward for the information they provided that led to the successful enforcement action.
Contact Us
Ingrid M. Evans and Evans Law Firm, Inc. represents individuals with information of any form of trading fraud actionable before the CFTC and the U.S. Securities and Exchange Commission. She can be reached at (415) 441-8669, or toll free at (888)503-8267 or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Ingrid also represents whistleblowers in cases involving the False Claims Act, offshore tax avoidance schemes or other tax fraud before the Internal Revenue Service, and bank fraud under the Financial Reform, Recovery, and Enforcement Act (FIRREA/FIAFEA),
[1] Evans Law Firm, Inc. was not involved in this case in any way.
