Investors can easily avoid this kind of fraudulent schemes by verifying a company’s registration with the CFTC before committing funds.
The Commodity Futures Trading Commission has charged Florida-based W Trade Group LLC, Larry Ramos Mendoza and Joseph Carvajales with fraud and misappropriation of over $19 million involving futures, forex and options.
The civil enforcement action in the U.S. District Court for the Southern District of Florida alleges that the firm, controled by Larry Ramos Mendoza, operated a long-running scheme from approximately June 2013 through June 2020 that defrauded futures, forex, and options customers. As a result, the fraudster misappropriated more than $19 million from at least 220 customers.
The CFTC alleges W Trade Group and Ramos allegedly sent false account statements to customers electronically showing purported profits and trading activity.
Joseph Carvajales allegedly solicited customers for the fraudulent scheme by making false claims such as the existence of a sophisticated trading algorithm, and limited downside risk.
Investors can easily avoid this kind of fraudulent schemes by verifying a company’s registration with the CFTC before committing funds.
If unregistered, a customer should be wary of providing funds to that entity. A company’s registration status can be found using NFA BASIC.
The CFTC has recently filed a civil enforcement action against five individuals and five companies with fraud, misappropriation,…
