The
Commodity Futures Trading Commission (CFTC) announced that Judge Carlos E.
Mendoza of the U.S. District Court for the Middle District of Florida has
issued a default judgment against Avinash Singh and his company, Highrise
Advantage, LLC. The judgment grants a permanent injunction and imposes monetary
sanctions in connection with a multi-level, multi-million dollar off-exchange
foreign currency (forex) scheme.
The
civil enforcement action, initiated by the CFTC on September 9, 2020, targeted
Singh, Highrise, and eight other defendants. The court’s order resolves the
case, finding that Singh fraudulently solicited and misappropriated funds
through master commodity pool Highrise and four feeder commodity pools. Singh
and Highrise also failed to register with the CFTC as required, violating
regulatory requirements related to operating commodity pools.
The
default judgment and permanent injunction prohibit Singh and Highrise from
engaging in conduct that violates the Commodity Exchange Act and CFTC
regulations. Furthermore, they are ordered to pay $25,558,594 in restitution
and $76,675,782 in civil monetary penalties. The court also permanently bans
Singh and Highrise from registering with the CFTC and participating in trading
on any registered entity.
The
court’s order reveals that Highrise and Singh collected nearly $58 million from
investors and feeder funds. However, less than $2.5 million was used for actual
forex trading, with over $25 million misappropriated. Investor funds were
utilized for Ponzi-type payments and personal expenses, while false statements
showing profits and no losses were sent to investors and feeder funds.
Notably,
on July 5, 2023, the court entered consent orders against the operators of the
four feeder commodity pools—SR&B Investment Enterprises, Inc., Green Knight
Investments, LLC, Bull Run Advantage, LLC, and King Royalty, LLC. These consent
orders resolve the litigation fully.
Federal Court Orders Florida Man and His Company to Pay Over $102 million in Restitution and Penalties for Forex Fraud: https://t.co/q5Z0Qi3jeU
— CFTC (@CFTC) December 20, 2023
Ponzi Scheme Fallout: Galles Entities Slapped with $20
Million Fine
Finance Magnates
previously reported that a
federal court has ruled for Phillip Galles and his entities, including Tyche
Asset Management LLC, to pay over $20 million for orchestrating a Ponzi
scheme within the commodity pool sector. The court’s decision, as covered by
Finance Magnates, found Galles liable for defrauding investors, diverting funds
for personal use, and making false claims of extraordinary returns.
The CFTC found Galles liable for defrauding investors,
diverting funds for personal use, and making false claims of extraordinary
returns. The court’s decision imposes a substantial financial penalty and
enforces a permanent trading ban on regulated markets to prevent future
violations. The CFTC
issued a cautionary note that repayment orders may not guarantee the recovery
of lost funds.
The
Commodity Futures Trading Commission (CFTC) announced that Judge Carlos E.
Mendoza of the U.S. District Court for the Middle District of Florida has
issued a default judgment against Avinash Singh and his company, Highrise
Advantage, LLC. The judgment grants a permanent injunction and imposes monetary
sanctions in connection with a multi-level, multi-million dollar off-exchange
foreign currency (forex) scheme.
The
civil enforcement action, initiated by the CFTC on September 9, 2020, targeted
Singh, Highrise, and eight other defendants. The court’s order resolves the
case, finding that Singh fraudulently solicited and misappropriated funds
through master commodity pool Highrise and four feeder commodity pools. Singh
and Highrise also failed to register with the CFTC as required, violating
regulatory requirements related to operating commodity pools.
The
default judgment and permanent injunction prohibit Singh and Highrise from
engaging in conduct that violates the Commodity Exchange Act and CFTC
regulations. Furthermore, they are ordered to pay $25,558,594 in restitution
and $76,675,782 in civil monetary penalties. The court also permanently bans
Singh and Highrise from registering with the CFTC and participating in trading
on any registered entity.
The
court’s order reveals that Highrise and Singh collected nearly $58 million from
investors and feeder funds. However, less than $2.5 million was used for actual
forex trading, with over $25 million misappropriated. Investor funds were
utilized for Ponzi-type payments and personal expenses, while false statements
showing profits and no losses were sent to investors and feeder funds.
Notably,
on July 5, 2023, the court entered consent orders against the operators of the
four feeder commodity pools—SR&B Investment Enterprises, Inc., Green Knight
Investments, LLC, Bull Run Advantage, LLC, and King Royalty, LLC. These consent
orders resolve the litigation fully.
Federal Court Orders Florida Man and His Company to Pay Over $102 million in Restitution and Penalties for Forex Fraud: https://t.co/q5Z0Qi3jeU
— CFTC (@CFTC) December 20, 2023
Ponzi Scheme Fallout: Galles Entities Slapped with $20
Million Fine
Finance Magnates
previously reported that a
federal court has ruled for Phillip Galles and his entities, including Tyche
Asset Management LLC, to pay over $20 million for orchestrating a Ponzi
scheme within the commodity pool sector. The court’s decision, as covered by
Finance Magnates, found Galles liable for defrauding investors, diverting funds
for personal use, and making false claims of extraordinary returns.
The CFTC found Galles liable for defrauding investors,
diverting funds for personal use, and making false claims of extraordinary
returns. The court’s decision imposes a substantial financial penalty and
enforces a permanent trading ban on regulated markets to prevent future
violations. The CFTC
issued a cautionary note that repayment orders may not guarantee the recovery
of lost funds.