LeapRate Forex Fraud Watch – CFTC fines FX trader David R. Lynch $470,000

He promised his victims a steady 7% monthly return from forex trading for almost 5 years

The CFTC has announced in a press release that it has obtained an order requiring David R. Lynch to pay restitution of $171,297 plus $300,000 civil monetary penalty. Not so smooth for a rather small forex Ponzi scheme that he put up.

The latest story about fraudulent commodity pool trading comes from Stuart, Florida. It has unfolded over five year between December 2008 and July 2013 when David R. Lynch has fraudulently solicited and misappropriated $348,450 from at least 14 commodity pool participants. He claimed that he will be able to return to his investors 7% per month from forex trading and that their principal was completely safe.

Customers were also supposed to be able to withdraw funds at any point in time from the pool, however things played out differently. David R. Lynch has misappropriated over $126,000 for personal use and to repay investors who were withdrawing their false profits. Mr Lynch has deposited the rest for conducting forex trading, however it turned out to be not very profitable for him.

As it usually happens with such cases, in order to conceal his losses he issued false monthly account statements that were misleading investors, showing them consistent profits. David R. Lynch is permanently banned from trading and registration as he has to desist further v violations of the Commodity Exchange Act.

For the full press release visit CFTC’s website.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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