The CFTC Slams Lawsuit Against Two Investments Outfits for Fraud

News / 15.02.2020

Both Denver local Breonna Clark and Venture Capital Investments Ltd are facing civil action based on the charges filed against them by the Commodity Futures Trading Commission (CFTC).

According to CFTC’s statement on February 14, they defrauded investors and did not register with the agency. There were claims by Clark and Venture Capital Investments concerning the management of a forex and cryptocurrency trading pool, luring U.S. participants to get involved in it for financial gain.

They used falsely stated experience and financial documents to lure about 72 individuals into the scheme, thereby obtaining $534,829, alleges CFTC. After deceiving the individuals, they allegedly provided them with fake documents to show trading profits and progress.

The CFTC alleged that they did not use investors’ money for trading activities, but spent $418,000 on unrelated purchases. They allegedly bought a luxury car and dished out “Ponzi-type payments” to certain individuals who are part of the trading pool.

The agency explained its imminent actions:

“In its litigation against the defendants, the CFTC seeks restitution to defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act, as charged.”

Different agencies have slammed legal action against some firms in the cryptocurrency domain within the previous several months. Notably, Tether is fighting against three lawsuits that were combined into one suit in recent times.

The CFTC is yet to provide further information as at the time of writing.


Featured image courtesy of Shutterstock. Source: Cryptopress.

Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.