A major US regulator has charged a firm and individuals involved in it over accusations that it operated a fraudulent forex trading scheme.
Oasis International stands accused of taking tens of millions of dollars from more than 700 people in the US as part of the scheme.
According to the Commodity Futures Trading Commission (CFTC) which charged the firm, from April 2014 onwards, Oasis approached people to offer them the chance to invest in commodity pools called Oasis Global FX, Limited and Oasis Global FX, SA.
The stated purpose of this investment was to trade on the foreign exchange markets. However, a series of alleged lies are believed to have followed.
The defendants allegedly created fake accounting statements which they circulated among investors. They also then allegedly spent some of the invested money on a number of personal expenditures, including everything from passes to sports games to holidays.
The details of the alleged crimes published by the CFTC indicate that there were a large range of statements made in an attempt to encourage individuals to invest.
The defendants allegedly said that there was a guaranteed annual return on investment of 12% on offer, while they also claimed that there was what the CFTC called “no risk of loss”.
They also supposedly said that the investment pools had never experienced a month where they saw a loss. Unrealistic profit figures were circulated too, including a suggestion that returns were as high as 22% in a year.
In a hallmark of a Ponzi scheme, they also allegedly used some of the funds to pay back other investors – a move which, if true, would have created the illusion of a profitable investment vehicle.
Officially, three organisations – Oasis International Group, Limited (OIG), Oasis Management, LLC (OM), and Satellite Holdings Company (Satellite) – were charged as part of the alleged fraud.
A number of individuals were also charged, including Michael J. DaCorta, John J. Haas, Joseph S. Anile, II, Francisco “Frank” L. Duran and Raymond P. Montie, III.
A spokesperson for the CFTC has said that the organisation intends to continue to “root out fraud”.
“This action is among the latest examples of the CFTC’s coordination with other regulators and criminal authorities to aggressively and assertively root out fraud and bad actors involved in our markets”, said James McDonald, who is the CFTC’s Director of Enforcement.
“We will continue to hold accountable not just companies, but also individual wrongdoers”, he added.
In its statement, the CFTC confirmed that it would seek significant damages against the individuals concerned.
“In its continuing litigation against the defendants, the CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, restitution, permanent registration and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act, and CFTC Regulations, as charged”, it said.
“The CFTC acknowledges and appreciates the cooperation and assistance of the Florida Office of Financial Regulation; the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation Division; the U.S. Attorney’s Office for the Middle District of Florida; and the Cayman Islands Monetary Authority”, it added.
- Former Schwab, Wells Fargo, and Morgan Stanley Advisor is Sentenced to Seven Years
- FX Fraudster On The Run After £70m Ponzi Scheme Collapses
- Fallout from “Hate-Symbol” Pepe Meme Could Have Implications for the Entire Crypto Sector
- Is this the Biggest Scam Operation in the World?
- Martin Lewis Fans Targeted in Bitcoin Scam
- NFT ‘Wash’ Trading – The Fake Deals Keeping Prices Artificially High
Former Schwab, Wells Fargo, and Morgan Stanley Advisor is Sentenced to Seven Years
FX Fraudster On The Run After £70m Ponzi Scheme Collapses
Safest Forex Brokers 2023
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||73 % of retail CFD accounts lose money Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#4||86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008||Global CFD Provider||
Best Trading App Visit broker
|#5||Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010||Global Forex Broker|
|#6||67% of CFD traders lose Founded: 2007||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#7||Your capital is at risk Founded: 2009, 2015 and 2017||Global Forex Broker|
|#8||Your capital is at risk Founded: 2006||CFD and Cryptocurrency Broker||
CFD and Cryptocurrency Visit broker
Forex Fraud Certified Brokers
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox