In April of the previous year, the US regulator filed a lawsuit against Kay, and her companies AK Equity Group and Xapphire. The CFTC accused them of unlawfully enticing approximately 67 investors to contribute at least $15.7 million to partake in a commodity pool, ostensibly for forex trading. The US watchdog added that the defendants made “false representations and material omissions”.
The CFTC stated:
The defendants also misappropriated at least .8 million of pool participants’ funds and spent that money on Yang’s personal expenses, including spending nearly .4 million at casinos and on luxury hotels and cars.
Earlier in May, the CFTC issued a $4.7 million fine for fraud and registration violations against Sharief Deona McDowell, a California resident.
