DAVIE, FL – Alan A. Grant, 51, of Davie, Florida, is facing penalties following a settlement with the U.S. Commodity Futures Trading Commission (CFTC) for defrauding investors in a foreign currency (forex) trading scheme. The CFTC issued an order on November 9, 2011, detailing charges against Grant and his company, Francis Grant Investments Inc. (FGI).
The investigation revealed that from April 2007 through August 2008, Grant solicited millions of dollars from hundreds of customers to invest in an off-shore commodity pool based in the Turks and Caicos Islands. The pool was designed to trade leveraged, off-exchange forex. However, in early 2008, a foreign regulatory action froze the pool’s assets and halted trading.
Despite knowing this critical information, Grant and FGI failed to disclose the situation to their clients. Instead, they continued to issue false account statements indicating profitable trading and actively solicited an additional $155,000 from approximately 18 customers between June and August 2008. This constituted a deliberate effort to mislead investors and conceal the loss of their funds.
As a result of the CFTC’s action, Grant and FGI are jointly and severally liable for a $500,000 civil monetary penalty. The order also includes a permanent trading ban, prohibiting them from any further engagement in commodity-related activities, including trading, soliciting funds, and seeking registration with the CFTC. The settlement requires Grant and FGI to cease and desist from violating anti-fraud provisions of the Commodity Exchange Act.
The case was led by CFTC staff members Timothy M. Kirby, Brandon T. Tasco, Kevin K. Batteh, Gretchen L. Lowe, and Vincent A. McGonagle.
Source: CFTC.gov
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