Forex firm Denari Capital and owner to pay $4 million in Pool Fraud case brought by CFTC

Steffy Bogdanova
November 30, 2021 12:44 pm

The Commodities and Futures Commission have revealed that the court has ordered the permanent injunction and monetary sanctions against Travis Capson, Arnab Sarkar and their California company Denari Capital, LLC.

According to the US regulator, the defendants engaged in forex pool fraud and failed to register with the CFTC as a commodity pool operator and associated persons as required.

The court found that between August 2012 and December 2019, the defendants fraudulently solicited people to invest with Denari, misrepresenting the past profitability of the company’s forex trading. According to the court order, Capson and Sarkar issued false account statements to participants showing falsified profitability of their respective interests in the pool. Additionally, they did not receive pool funds in the pool’s name but instead improperly mixed the pool funds.

CFTC fine

The court also found that Capson made misrepresentations about Denari’s activities to the National Futures Association (NFA).

The court ordered Capson and Sarkar to payf $250,000 and $166,000, respectively, as penalty. Additionally they and Denari are required to pay restitution of $3,663,282 to victims of their scheme. The court also imposed a permanent injunction prohibiting the defendants from further violations of the Commodity Exchange Act and CFTC regulations, permanent registration bans, and five-year trading bans.

Earlier this month, CFTC issued a $7 million penalty in binary options fraud scheme.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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