CFTC Files Charges Against Technical Trading Team And Its Executives
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The Commodity Futures Trading Commission (CFTC) has filed a civil lawsuit against the Technical Trading Team and its CEO, Edwin Carrion. The charges also mention the COO and head trader, Jason Rodriquez.
The lawsuit claims they participated in a fraudulent scheme that generated nearly $5 million from around 27 retail investors. These traders incurred huge losses while trading leveraged forex on the platform.
The executives behind this platform misappropriated customer funds for their benefit. They also used the collected funds to pay back to early investors.
CFTC Files Charges Against Technical Trading Team
Edwin Carrion, Jason Rodriquez, and the Technical Trading Team fraudulently solicited funds from investors not eligible to trade forex using margin.
The investors are also charged with operating as commodity trading advisors and associated persons without the necessary registrations. The defendants also failed to secure the required disclosures on client testimonials on the Denari website. They also lacked a hypothetical disclaimer needed under CFTC regulations.
The defendants also created an illusion of stability, promising victims high annual interest rates and a return on principal investments. The defendants also exaggerated the forex trading track record and misrepresented risk management strategies.
Misleading Claims
They also made false claims about recouping losses and repaying loans using an AI-based bot used for trading. According to the CFTC, the representatives on the matter are false and misleading.
The Director of Enforcement at the CFTC, Ian McGinley, said the defendants made false claims on the safety and profitability of becoming a pool participant in the TTT commodity pol. These false promises saw investors lose millions of dollars in the scheme.
“Today’s filing once again demonstrates how the CFTC will hold fraudsters in our markets accountable for their wrongdoing, whether utilizing traditional technical trading techniques or emerging technologies, such as artificial intelligence or machine learning,” McGinley said.
Besides making false statements, the commission said that the executive made false claims of being experienced in the trading and investing industry. The commission further noted that the defendants did not understand whether the traders invested in the pool were qualified.
The CFTC wants civil monetary penalties and restitution to the defrauded pool participants. It also seeks disgorgement of ill-acquired gains, permanent registration, and trading bans. It also seeks a permanent injunction against future violations of CFTC regulations and the Commodity Exchange Act.
