Brooklyn resident Mark A. Ramkishun has been ordered to pay over $2.6 million in restitution and penalties after being found liable for fraudulently soliciting investments in a commodity pool and misappropriating funds, the Commodity Futures Trading Commission (CFTC) announced Monday.
The U.S. District Court for the Eastern District of New York entered a final judgment against Ramkishun, resolving a lawsuit filed by the CFTC in January. The court found Ramkishun acted as an unregistered commodity pool operator, inducing investors to contribute approximately $1.69 million to a pool called Leo Growl LLC through fraudulent means.
According to the court, Ramkishun knowingly made false statements and omitted critical information about how the funds would be used and the purported profits earned by pool participants. He falsely assured some investors they could not lose their principal and distributed fabricated account statements showing consistent gains, despite incurring net trading losses exceeding $550,000.
The CFTC found that less than half of the invested funds were actually used for trading, with a substantial portion diverted for personal expenses and used to make Ponzi-like payments to earlier investors using funds from newer investors. Ramkishun also failed to maintain the pool as a separate entity, commingling personal and investor funds in violation of CFTC regulations.
The court’s order permanently prohibits Ramkishun from engaging in any conduct that violates the Commodity Exchange Act, registering with the CFTC, and trading on any registered entity. He is required to pay $1,076,758 in restitution and a $1,566,977.07 civil monetary penalty.
This ruling comes in parallel with a criminal case brought by the Kings County District Attorney’s Office in Brooklyn, where Ramkishun was arraigned on a 56-count indictment in late 2022 based on similar allegations.
The CFTC urges the public to verify the registration of any investment firm before providing funds and provides resources for reporting suspicious activity, including a toll-free hotline (866-FON-CFTC) and an online tip/complaint form.
Source: CFTC.gov
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