Alex Ekdeshman and his company Paramount Management LLC used the vast majority of customer funds for business expenses.
The CFTC has announced that it has obtained a federal court order against Alex Ekdeshman of Holmdel NJ and his company Paramount Management LLC, requiring $1.1 million in restitution to their defrauded customers plus a $1.3 million monetary penalty.
The CFTC’s complaint charged Ekdeshman with solicitation fraud and misappropriating the vast majority of his customer’s funds for business expenses and his personal benefit. Specifically, the Complaint charged Ekdeshman with operating a fraudulent scheme that solicited more than $1.3 million from approximately 110 retail customers to engage in leveraged forex trading.
Ekdeshman touted Paramount’s trading record as having yielded an average monthly return of 4.6% over a 20-month period. However Ekdeshman and Paramount did not actually manage or trade any customer account. Instead, Ekdeshman misappropriated all customer funds for his personal benefit, issuing false account statements to his customers.
For the CFTC press release click here.