CFTC announces charges in a $9.8 million commodity futures and options fraud case

<img width="562" height="339" src="https://www.leaprate.com/wp-content/uploads/2020/06/CFTC-Fraud.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="CFTC" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2020/06/CFTC-Fraud.jpg 730w, https://www.leaprate.com/wp-content/uploads/2020/06/CFTC-Fraud-230×138.jpg 230w, https://www.leaprate.com/wp-content/uploads/2020/06/CFTC-Fraud-380×228.jpg 380w, https://www.leaprate.com/wp-content/uploads/2020/06/CFTC-Fraud-88×53.jpg 88w, https://www.leaprate.com/wp-content/uploads/2020/06/CFTC-Fraud-245×148.jpg 245w, https://www.leaprate.com/wp-content/uploads/2020/06/CFTC-Fraud-500×301.jpg 500w" sizes="(max-width: 562px) 100vw, 562px" /><h2>Details of the fraud</h2>
<p>The US regulator alleges that defendants misappropriated funds from the pool participants and used them to pay personal expenses and to trade commodity futures and options in personal trading accounts.</p>
<p>The trading was unprofitable and resulted the pool participants ended up losing money. However, the defendants falsely informed them their investments were accruing interest.</p>
<p>According to the CFTC, in order to hide their fraudulent actions, the defendants lied to an introducing broker and to futures commission merchants that held the defendants’ trading accounts and pool participants’ funds.</p>
<p>The <a target="_blank" href="https://www.leaprate.com/tag/cftc/" rel="noopener">CFTC</a> announced that the preliminary injunction hearing was canceled as Patel had died.</p>
<p>The Commission recently brought charged against five individuals and five companies of fraud, misappropriation and registration violations in relation to a <a target="_blank" href="https://www.leaprate.com/financial-services/fraud/cftc-charges-rofx-net-in-58-million-forex-fraud-scheme/" rel="noopener">fraudulent forex scheme.</a></p>
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