Dearborn, Michigan resident Ali Bazzi and his firm, Welther Oaks, LLC, have been slapped with a default judgment and permanent injunction following a CFTC investigation into alleged forex fraud. U.S. District Court Judge Matthew F. Leitman issued the order on December 13, 2022, finding Bazzi and Welther Oaks liable for misappropriating funds, fraudulent solicitation, and issuing false account statements.
The CFTC initially filed a complaint on August 17, 2021, alleging that Bazzi and Welther Oaks fraudulently solicited at least $540,047 from 35 participants between March 2018 and the filing date. The pair purportedly promised guaranteed profits of up to 15% monthly on investments in a leveraged forex commodity pool, falsely claiming substantial trading profits and immediate access to funds.
Investigators found that only a small portion of the collected funds were actually used for forex trading. Instead, Bazzi and Welther Oaks allegedly concealed their scheme by fabricating account statements showing false profits. A significant $439,644 of participant funds was reportedly misappropriated by Bazzi for personal expenses, including vehicles, jewelry, retail purchases, dining, entertainment, and travel.
This CFTC action runs parallel to a criminal case where Bazzi pleaded guilty on August 17, 2021, and was subsequently sentenced to 33 months in prison on May 4, 2022. He was also ordered to pay $441,231.53 in restitution. The civil judgment imposes a $441,232 civil monetary penalty on Bazzi and Welther Oaks, jointly and severally, and permanently bans them from trading and registering with the CFTC.
The CFTC cautions investors that recovering lost funds is not guaranteed, as wrongdoers may lack sufficient assets. The agency collaborated with the U.S. Attorney’s Office for the Eastern District of Michigan and the FBI’s Detroit Field Office throughout the investigation.
Source: CFTC.gov
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