Crypto Fraud Scheme Organizers Face Legal Action by CFTC in Florida, Louisiana, and Arkansas
The Commodity Futures Trading Commission (CFTC) has taken legal action against four individuals and their organization, Fundsz, for their involvement in a fraudulent scheme related to cryptocurrencies and precious metals trading.
Rene Larralde from Melbourne, Florida, Juan Pablo Valcarce from West Melbourne, Florida, Brian Early from New Orleans, Louisiana, and Alisha Ann Kingrey from Franklin, Arkansas, along with their unincorporated entity Fundsz, are under investigation for engaging in misleading investment solicitations.
According to the CFTC's complaint filed in the U.S. District Court for the Middle District of Florida, the defendants deceived investors by promising implausible returns based on a supposed "proprietary algorithm."
“The CFTC continues to root out individuals who defraud customers in the cryptocurrency and precious metals markets," the agency's director of enforcement, Ian McGinley, said.
The regulatory body said Fundsz attracted customers with the pledge of steady 3% weekly profits through cryptocurrency and precious metal trading.
They promoted Fundsz as a highly profitable venture, claiming that a $2,500 investment could turn into $1 million in just 48 months.
In addition, they falsely associated Fundsz with charitable initiatives to capitalize on the appeal of contributing to worthy causes.
The regulatory body further alleges that the defendants lured over 14,000 individuals by fabricating weekly returns.
The CFTC also said that Fundsz did not trade customer funds and reported fictional weekly returns to customers.
Earlier this month, Judge Wendy Berger of the U.S. District Court issued a statutory restraining order, freezing the defendants' assets and appointing a temporary receiver.
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