CFTC Accuses Florida Individual Of Fraud And Misappropriating Investment Funds
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US financial market regulator, Commodity Futures Trading Commission (CFTC), has filed charges against Patrick Wonsey, a Florida-based individual. The regulator accuses the individual of fraud and misappropriating investment funds.
The charges are related to a trading company that offered leveraged retail foreign currency (forex) and binary options.
CFTC Takes Legal Action Against Individual Involved In $3.4M Scheme
The complaint filed by the US regulator claims that Wonsey solicited more than $3.4 million from around 50 individuals. The fraudulent activities conducted by the individual happened from January 2017 to September 2022.
Wonsey solicited and pooled investors’ funds for trading activities for a wide range of products, such as binary options, retail forex, metals, and digital assets.
The complaint filed by the CFTC at the US District Court for the Middle District of Florida outlined several wrongdoings of Wonsey at the company. The CFTC seeks that Wonsey pay multiple penalties.
These include civil monetary penalties, disgorgement of ill-acquired gains, restitution to victims, permanent registration, and trading bans. The regulator also seeks a permanent injunction to prevent the violation of the Commodity Exchange Act (CEA).
Wonsey Accused Of Misappropriating Investor Funds
Wonsey is being accused of making false claims about successful trades in the past and the ability of investors to make profits. The individual also lied about the frequency of customer payouts and the low risk of trading operations.
Wonsey also failed to use investor funds for the purposes for which they were meant. Instead, he misappropriated these funds for his gain. He also paid some pool participants, with his operational model similar to a Ponzi scheme.
The Florida individual also failed to honor investors’ requests to withdraw their funds. He ignored pleas and gave them excuses for why their withdrawal requests could not be met. He also engaged in actions meant to delay these withdrawals for the longest time.
The complaint also said that Wonsey did not obtain the appropriate registration as a commodity pool operator. He also failed to create a pool as the law mandated. The funds owned by the pool participants were mixed with investor assets while violating the existing regulatory framework.
The Division of Enforcement at the CFTC is leading these efforts. The enforcement action commemorates the commitment of the CFTC to protecting the integrity of financial markets while safeguarding investors from fraud. The regulator is also seeking justice for the victims affected by this fraudulent scheme.
