The Commodity Futures Trading Commission (CFTC) has taken legal action against residents of Florida, Louisiana, and Arkansas, as well as their organization Fundsz. They group was involved in a fraud scheme related to cryptocurrencies and precious metals trading.
According to the official statement, the defendants enticed over 14,000 individuals by making false promises of substantial weekly returns based on a purported “proprietary algorithm.”
Rene Larralde of Melbourne, Florida; Juan Pablo Valcarce of West Melbourne, Florida; Brian Early of New Orleans, Louisiana; and Alisha Ann Kingrey of Franklin, Arkansas, are accused of misleading investment solicitations.
The CFTC claims that they falsely portrayed Fundsz as a profitable venture, luring investors with the possibility of a $2,500 investment growing to $1 million within 48 months. Additionally, the defendants allegedly linked Fundsz to charitable initiatives to further attract unsuspecting investors.
CFTC Complaint: Fundsz Accused of Fabricated Profits, Deceptive Claims; Judge Orders Asset Freeze
The CFTC’s complaint, filed in the United States District Court for the Middle District of Florida, alleges that Fundsz did not engage in actual trading of customer funds and was built on fabricated profits and deceptive claims. Judge Wendy Berger has issued a restraining order freezing the defendants’ assets, and a preliminary injunction hearing is scheduled for Aug. 23.
The CFTC aims to secure restitution for deceived investors, recover ill-gotten gains, impose financial penalties, and prevent future infractions through bans on trading and registration.
In a related case, Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York issued a default judgment against Michael Ackerman for operating a fraudulent scheme that solicited funds under false pretenses.