The Commodity Futures Trading Commission (CFTC) has announced a consent order against defendants Abner Alejandro Tinoco, and his company, Kikit & Mess Investments, LLC.
The order was entered in the Western District of Texas in regards to an enforcement action. The order imposes injunctive relief, including bans relating to trading and registration.
According to the CFTC, the investment firm and Tinoco misappropriated over $7.2 million from investors who were under the impression their money would be used to trade forex or cryptocurrency in managed accounts. According to the order, the defendants did not trade their clients’ funds as represented, and instead used them to pay for Tinoco’s personal expenses, such as the travel costs for chartering a private jet, the purchase of a luxury mansion, and another real estate,. As well, Tinoco apparently used the funds to purchase or lease of luxury automobiles. Some of the funds were used to pay “investment profits” to clients in a Ponzi scam-like manner. At least 322 individual clients were impacted.
On March 25, 2022, U.S. District Court Judge David C. Guaderrama signed a Consent Order of Permanent Injunction making liability findings.
In addition to finding the defendants liable for fraud, the order enjoins the defendants from future violations of the Commodity Exchange Act (CEA). The order also permanently bans the defendants from trading or registering with the CFTC and reserves determination of the amounts of restitution, disgorgement, and civil monetary penalty for future decision by the court.
