CFTC Charges Residents Of Arkansas, Louisiana, Florida With Crypto Fraud

Aug. 15, 2023
CFTC Charges Residents Of Arkansas, Louisiana, Florida With Crypto Fraud

The Commodity Futures Trading Commission (CFTC) has initiated legal against specific individuals and their unincorporated entity, Fundsz. The regulatory body accused them of engaging in a deceptive scheme involving the trading of precious metals and crypto.

Rene Larralde from Melbourne, Florida; Brian Early from New Orleans, Louisiana; Alisha Ann Kingrey from Franklin, Arkansas; and Juan Pablo Valcarce from West Melbourne, Florida and Fundsz are facing allegations. They lured people with incredible returns through a “proprietary algorithm.”

The agency filed a complaint in the US District Court for the Middle District of Florida. 

The defendants promised consistent 3% weekly profits through precious metals and crypto trading. The accused falsely showed Fundsz as a profitable chance, claiming that a small $2,500 investment could become $1 million in just 48 months, as per a report.

In addition, they connected Fundsz with charitable organizations, using the appeal of supporting noble causes. The agency also alleged that the defendants attracted over 14,000 individuals by giving weekly payments. However, in reality, Fundsz did not involve in any trading of investor funds, according to the CFTC. The entire project seems to be built on fraudulent claims and fabricated benefits.

Judge Wendy Berger of the U.S. District Court issued an ex parte statutory restraining order that freezes the defendants’ assets, preserves records, and designates a temporary receiver. Moreover, a hearing for a preliminary injunction is slated for Aug. 23.

CFTC Aims To Expose Deceptive Crypto Schemes

Thе CFTC’s dirеctor of еnforcеmеnt, Ian McGinlеy, warnеd against bеliеving invеstmеnts that sound “too good to bе truе. ” Hе said that individuals еxеrcisе prudеncе bеforе making any financial decisions.

McGinley stated:

“The CFTC continues to root out individuals who defraud customers in the cryptocurrency and precious metals markets. Though the products fraudsters purport to trade and their methods of attracting victims.”

In its latest action, thе CFTC strives to achieve restitution for deceived investors, recover illegal profits, impose fines, ban trading and registration, and an enduring injunction against future scams.

As this legal dispute unfolds, it warns potential people to proceed with thorough diligence and prudence. The CFTC’s efforts underscore the importance of checking a company’s registration before investing to protect customers from scams.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.