The US
Commodity Futures Trading Commission (CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term) announced that a federal court has
ordered Valdas Dapkus and two of his companies to pay over $2.8 million in
monetary sanctions for operating a fraudulent forex (FX) fund scheme.
The Court
for the District of New Jersey issued default judgments against Dapkus,
Tradewale LLC, and Tradewale Managed Fund for soliciting members of the public
to invest in a purported FX trading fund using false claims and
misappropriating investor funds.
Specifically,
the defendants were found to have made false statements that Tradewale had a
“unique trading system” using “artificial intelligence” to generate high
returns. However, most investors were unable to access or withdraw their funds.
“Tradewale
also claimed it generated average monthly returns of 4%-11% and average yearly
returns of over 55% with ‘minimal risk’,” the CFTC commented in the official
statement.
Federal Court Orders Unregistered Commodity Trading Advisor, Its Manager, and a Managed Fund to Pay Over $2.8 Million in Monetary Sanctions for Fraudulent Retail Forex Fund Scheme: https://t.co/XurfDqbzZ1
— CFTC (@CFTC) December 28, 2023
The court
ordered the defendants to pay $713,520 in restitution to defrauded investors
and a $2.14 million civil monetary penalty. Dapkus and the Tradewale entities
are also permanently banned from trading or operating in violation of commodity
trading laws.
This
judgment resolves a CFTC enforcement action filed in September 2021, charging
the defendants with fraud, misappropriation, and failure to register. According
to the complaint, none of the approximately 17 Tradewale investors received any
returns, while the defendants misappropriated over $700,000.
The CFTC
cautioned that the judgment may not result in investors actually recovering
their lost funds. The agency said it will continue working to protect customers
and hold wrongdoers accountable.
Prevalent Forex Scams in
the USA
In the USA,
the Forex market has unfortunately been marred by frequent and often more
severe scams than previously reported. Just last week, Finance Magnates
disclosed a major development where a US court ruled against Michael DaCorta. The
court ordered DaCorta, three of his companies, and four other individuals to
pay roughly $60 million. This penalty encompasses a permanent injunction,
monetary sanctions, and equitable relief. Over 800 investors suffered losses
totaling about $80 million due to these fraudulent schemes.
Simultaneously,
the CFTC brought to light another case of forex fraud. The court issued a
default judgment against Avinash Singh and his company, Highrise Advantage,
LLC. The judgment includes a permanent injunction and monetary sanctions,
addressing a complex, multi-level forex scheme involving $102 million.
In a
similar vein, a federal court in November ordered an Illinois man and his
entities to pay over $20 million for operating a Ponzi scheme in the commodity
pool sector. Phillip Galles and his Chicago-based Tyche companies were found
guilty of defrauding investors and violating regulatory laws, as announced by
the CFTC.
These
scandals emerged as the latest CFTC data revealed a slight uptick in retail
forex (FX) deposits across six brokers in the US. October’s figures showed a
modest increase, recovering from September’s low, with the total deposit
amounting to $518.4 million. Despite this increase, the total remains
relatively low in comparison to recent months, marking only a 0.4% rise from
the previous month’s $516.3 million.
The US
Commodity Futures Trading Commission (CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term) announced that a federal court has
ordered Valdas Dapkus and two of his companies to pay over $2.8 million in
monetary sanctions for operating a fraudulent forex (FX) fund scheme.
The Court
for the District of New Jersey issued default judgments against Dapkus,
Tradewale LLC, and Tradewale Managed Fund for soliciting members of the public
to invest in a purported FX trading fund using false claims and
misappropriating investor funds.
Specifically,
the defendants were found to have made false statements that Tradewale had a
“unique trading system” using “artificial intelligence” to generate high
returns. However, most investors were unable to access or withdraw their funds.
“Tradewale
also claimed it generated average monthly returns of 4%-11% and average yearly
returns of over 55% with ‘minimal risk’,” the CFTC commented in the official
statement.
Federal Court Orders Unregistered Commodity Trading Advisor, Its Manager, and a Managed Fund to Pay Over $2.8 Million in Monetary Sanctions for Fraudulent Retail Forex Fund Scheme: https://t.co/XurfDqbzZ1
— CFTC (@CFTC) December 28, 2023
The court
ordered the defendants to pay $713,520 in restitution to defrauded investors
and a $2.14 million civil monetary penalty. Dapkus and the Tradewale entities
are also permanently banned from trading or operating in violation of commodity
trading laws.
This
judgment resolves a CFTC enforcement action filed in September 2021, charging
the defendants with fraud, misappropriation, and failure to register. According
to the complaint, none of the approximately 17 Tradewale investors received any
returns, while the defendants misappropriated over $700,000.
The CFTC
cautioned that the judgment may not result in investors actually recovering
their lost funds. The agency said it will continue working to protect customers
and hold wrongdoers accountable.
Prevalent Forex Scams in
the USA
In the USA,
the Forex market has unfortunately been marred by frequent and often more
severe scams than previously reported. Just last week, Finance Magnates
disclosed a major development where a US court ruled against Michael DaCorta. The
court ordered DaCorta, three of his companies, and four other individuals to
pay roughly $60 million. This penalty encompasses a permanent injunction,
monetary sanctions, and equitable relief. Over 800 investors suffered losses
totaling about $80 million due to these fraudulent schemes.
Simultaneously,
the CFTC brought to light another case of forex fraud. The court issued a
default judgment against Avinash Singh and his company, Highrise Advantage,
LLC. The judgment includes a permanent injunction and monetary sanctions,
addressing a complex, multi-level forex scheme involving $102 million.
In a
similar vein, a federal court in November ordered an Illinois man and his
entities to pay over $20 million for operating a Ponzi scheme in the commodity
pool sector. Phillip Galles and his Chicago-based Tyche companies were found
guilty of defrauding investors and violating regulatory laws, as announced by
the CFTC.
These
scandals emerged as the latest CFTC data revealed a slight uptick in retail
forex (FX) deposits across six brokers in the US. October’s figures showed a
modest increase, recovering from September’s low, with the total deposit
amounting to $518.4 million. Despite this increase, the total remains
relatively low in comparison to recent months, marking only a 0.4% rise from
the previous month’s $516.3 million.