CFTC Targets Funds Fraud in Cryptocurrency, Metals Scheme

The Commodity Futures Trading Commission (CFTC) has initiated legal proceedings against individuals and their organization Fundsz, for their participation in a fraudulent scheme involving the trading of cryptocurrencies and precious metals.

Rene Larralde of Melbourne, Florida, Juan Pablo Valcarce of West Melbourne, Brian Early of Florida, Brian Earl of New Orleans Louisiana and Alisha Ann Kingrey of Franklin Arkansas, in addition to their unincorporated entity Fundsz, are accused of sending out deceptive investment solicitations.

Supposedly, they persuaded investors with unrealistic returns based on a “proprietary algorithm.”

The CFTC filed a complaint in the U.S. District Court for the Middle District of Florida, alleging that the defendants enticed clients with the promise of 3% weekly profits from cryptocurrency and precious metal trading.

They falsely portrayed Fundsz as a profitable enterprise, claiming that a $2,500 investment could grow to $1 million in 48 months.

In addition, the accused fraudulently associated Fundsz with charitable initiatives, capitalizing on the appeal of donating to deserving causes.

In addition, the regulatory body asserts that the defendants were able to deceive over 14,000 people by creating phony weekly returns. Nevertheless, according to the CFTC, Fundsz did not actively trade customer funds.

The entire enterprise appears to have been founded on fictitious profits and false claims. The United States District Court’s Judge Wendy Berger issued a unilateral statutory restraining order, effectively blocking the defendants’ assets and appointing a temporary receiver.

On August 23, a preliminary injunction hearing is scheduled. The CFTC endeavors to ensure fairness by pursuing restitution for deceived investors, reclaiming ill-gotten gains, imposing monetary penalties, implementing trading and registration bans, and securing a permanent injunction against future violations.

Previously, the CFTC disclosed that Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York had issued a default judgment. This judgment imposed a permanent injunction against Michael Ackerman, a resident of Alliance, Ohio.