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CFTC brings forex fraud charges in a $426K Ponzi Scheme



The Commodity Futures Trading Commission has filed a civil enforcement action against Gregory Demetrius Bryant, Jr., formerly of Hawaii. The US watchdog charged him with fraudulent solicitation, misappropriation, operation of an unlawful commodity pool, and failure to register with the CFTC.

The CFTC alleges that Bryant fraudulently solicited $426,000 from 35 investors for pooled futures and forex trading. He used $356,000 to pay personal expenses, including international travel, shopping, and rent and $66,000 to make Ponzi payments to conceal and further his fraudulent scheme.

According to the regulator’s official complaint, Bryant claimed to be president of the nonexistent company “Surrey Libor Capital, LLC” from September 2016 to June 2020. During this period he falsely guaranteed monthly futures and forex trading returns of $6,000 to $8,000 in some cases and 60% to 80% in others.

CFTC

The CFTC further alleges that Bryant made numerous false statements to potential and current pool participants about his trading experience, his success rate, and being registered with the National Futures Association. Bryant omitted to disclose that he was a convicted criminal with a history of financial problems, including three bankruptcies.

The regulator explained that instead of trading futures and forex, as he promised, Bryant spent the vast majority of pool funds for personal expenses and to make purported “returns” to pool participants. He further hid his fraud by falsely telling them their accounts were “in great shape,” to expect returns soon, and to some investors, that the coronavirus pandemic has impacted his business.

CFTC has stated that it seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations.

The regulator has once again advised traders to verify a company’s or individual’s registration with the CFTC using the NFA BASIC before committing funds.

CFTC recently found Silver Star FX, LLC, which operates under the name Silver Star Live (SSL), Silver Star Live Software LLC (SSLS) and their operator David Wayne Mayer (also known as Quicksilver) liable for solicitation fraud in forex transactions, Commodity Trading Advisor (CTA) fraud and multiple CFTC registration violations.

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CFTC brings forex fraud charges in a $426K Ponzi Scheme

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