CFTC Charges Florida-Based Entities and Individuals with Multi-Million Dollar Futures and Forex Fraud
Washington, DC (STL.News) The Commodity Futures Trading Commission announced today that it has filed a civil enforcement action in the U.S. District Court for the Southern District of Florida against The W Trade Group LLC, Larry Ramos Mendoza of Miami, Florida, and Joseph Carvajales also of Miami, Florida, charging them with fraud and misappropriation of over $19 million involving futures, forex, and options.
In the ongoing litigation, the CFTC seeks restitution, disgorgement, civil monetary penalties, trading and registration bans, and injunctions against further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged.
Case Background
The complaint alleges that W Trade Group LLC, acting under Ramos’ control, operated a long-running scheme from approximately June 2013 through June 2020 that defrauded futures, forex, and options customers. W Trade Group and Ramos are alleged to have misappropriated more than $19 million from at least 220 customers. In order to further this scheme, W Trade Group and Ramos allegedly sent false account statements to customers electronically showing purported profits and trading activity, when in fact none existed.
The complaint also states that Carvajales, in conjunction with W Trade Group and Ramos, fraudulently solicited customers for the fraudulent scheme by making false claims such as the existence of a sophisticated trading algorithm, and limited downside risk.
The Division of Enforcement thanks and acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of Florida.
The Division of Enforcement staff members responsible for this case is Kevin Samuel, Eugenia Vroustouris, Alison B. Wilson, and Rick Glaser.