The Commodity Futures Trading Commission (CFTC) has filed charges against four individuals as well as an unincorporated entity called Fundsz. The complaint charges them with fraudulent solicitation from clients to purportedly trade in cryptocurrencies and precious metals.
Filed in District Court in Florida, the following individuals have been named in the complaint: Rene Larralde of Melbourne, Florida, Juan Pablo Valcarce of West Melbourne, Florida, Brian Early of New Orleans, Louisiana, Alisha Ann Kingrey of Franklin, Arkansas.
The CFTC states that the judge has signed a restraining order freezing the defendants’ assets, preserving records, and appointing a temporary receiver.
A hearing on the CFTC’s motion for preliminary injunction is scheduled for August 23.
The complaint claims that from approximately October 2020 to the present, the defendants solicited individuals with claims that Fundsz has historically produced over 3% returns per week using a “proprietary algorithm” for trading cryptocurrencies and precious metals, among other things. The complain further states that Fundsz claims that a one time $2500 contribution would grow to $1 million in 48 months. Over 14,000 individuals succumbed to the claims.
The CFTC is seeking restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA).
“The CFTC continues to root out individuals who defraud customers in the cryptocurrency and precious metals markets,” said Director of Enforcement Ian McGinley. “Though the products fraudsters purport to trade and their methods of attracting victims—in this case through social media—may have changed, the old adage ‘if something sounds too good to be true, it probably is’ remains as valid as ever.”
