A Texas court has found Abner Alejandro Tinoco and his firm, Kikit & Mess Investments, LLC, liable for defrauding investors out of over $7.2 million, the Commodity Futures Trading Commission (CFTC) announced today. The consent order, entered in the Western District of Texas on March 29, 2022, details a scheme where Tinoco and his company falsely promised to trade forex and cryptocurrency on behalf of at least 322 clients.
Instead of investing client funds as represented, the CFTC found that Tinoco misappropriated the money for personal expenses. These included chartering a private jet, purchasing a luxury mansion and other real estate, and acquiring luxury vehicles. A portion of the funds was also used to pay earlier investors, functioning as a Ponzi scheme, according to the order.
The fraudulent solicitation began in September 2020. U.S. District Court Judge David C. Guaderrama signed the Consent Order of Permanent Injunction on March 25, 2022, establishing the liability findings. The order permanently bans Tinoco and Kikit & Mess Investments from trading or registering with the CFTC.
While the court has established liability, the determination of restitution, disgorgement, and civil monetary penalties has been reserved for a future decision. The CFTC’s enforcement action seeks to recover the misappropriated funds and penalize the defendants for their actions.
The case was led by CFTC staff members Susan B. Padove, Heather J. Dasso, Matthew Edelstein, David A. Terrell, Scott Williamson, and Robert T. Howell. The CFTC urges the public to verify the registration of any investment firm or individual before providing funds, and provides resources to report suspicious activity through its hotline (866-FON-CFTC) and online complaint form.
Source: CFTC.gov
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