CFTC files charges in a multi-million dollar futures and forex fraud

The Commodity Futures Trading Commission (CFTC) has filed charges for fraud and misappropriation of more than $19 million involving futures, forex and options. The regulator brought charges against The W Trade Group LLC, Larry Ramos Mendoza and Joseph Carvajales.

According to the US watchdog, W Trade Group LLC, acting under Ramos’ control, operated a long-running scheme defrauding futures, forex, and options customers. The scheme ran from June 2013 through June 2020.


Details of the fraudulent scheme

The CFTC alleges that W Trade Group and Ramos have misappropriated over $19 million from 220 customers. To maintain the scheme, W Trade Group and Ramos sent customers false account statements showing them purported profits and trading activity, when in fact there was none.

The other defendant, Carvajales, conjunction with W Trade Group and Ramos, as alleged by CFTC’s charges, solicited customers for this scheme. They made false claims about their fraudulent activity, claiming there was a sophisticated trading algorithm, and limited downside risk.

CFTC is seeking restitution, disgorgement, monetary penalties and bans against the defendants.

The Commission recently brought charged against Rajiv Patel and Bluprint LLC, charges in a $9.8 million commodity futures and options fraud case.

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