IRVINE, CA – May 14, 2012 – Alexandre P. Guimaraes of Irvine, California, has been charged with fraud by the U.S. Commodity Futures Trading Commission (CFTC), stemming from a scheme to defraud customers trading off-exchange foreign currency contracts, commonly known as forex. The CFTC alleges that Guimaraes, operating through his company ACI Capital Group, L.L.C., fraudulently solicited over $465,000 from approximately 29 individuals in California and Hawaii between February 2010 and February 2011.
According to the CFTC’s order, Guimaraes falsely represented his experience and the profitability of forex trading to attract investors. However, beginning in April 2010, ACI customers sustained significant trading losses which were deliberately concealed. The CFTC alleges that Guimaraes and ACI issued hundreds of fabricated monthly account statements, falsely reporting profits to customers each month to mask the actual losses.
The investigation further revealed that Guimaraes misappropriated over $44,000 in customer funds for personal expenses. Additionally, Guimaraes acted as an unregistered commodity trading advisor (CTA), violating federal regulations. ACI Capital Group, L.L.C. is held liable for Guimaraes’ actions.
The CFTC order mandates that Guimaraes and ACI Capital Group, L.L.C. jointly and severally pay $428,046.31 in restitution to the defrauded customers and a $420,000 civil monetary penalty. Both Guimaraes and ACI are permanently banned from trading and registering with the CFTC.
The case was led by CFTC staff members Amanda L. Harding, David S. Slovick, Michael Loconte, Erica Bodin, Kathleen M. Banar, Rick Glaser, and Richard Wagner.
Note: The CFTC clarifies that ACI Capital Group, L.L.C., of Irvine, California, is a separate entity from ACI Capital Group, LLC, registered in Delaware and based in New York, NY.
Source: CFTC.gov
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