The U.S. Commodity Futures Trading Commission announced a judgment against Allied Markets, LLC of Florida for operating a fraudulent foreign currency (forex) trading pool and misappropriating customer funds. The judgment, entered by the U.S. District Court for the Middle District of Florida, mandates Allied Markets pay a $1.2 million civil penalty and $1.2 million in restitution to defrauded clients.
The court also permanently banned Allied Markets from any involvement in commodity-related activities and violations of the Commodity Exchange Act (CEA) and CFTC regulations. This judgment follows a prior ruling on March 4, 2019, against Allied Markets’ principals, Joshua Gilliland and Chawalit Wongkhiao, both of Florida, who received the same permanent ban.
The case originated from a CFTC complaint filed on January 5, 2015, alleging fraudulent solicitation and misappropriation of funds from participants in the illegal commodity pool. The court found that the defendants violated anti-fraud provisions and registration requirements outlined in the CEA and CFTC regulations. Evidence presented showed the defendants made numerous misrepresentations and diverted customer funds for personal expenses, including gym memberships and luxury vehicle rentals.
In a parallel criminal case, Gilliland and Wongkhiao both pleaded guilty to conspiracy to commit wire fraud, partially based on the CFTC’s complaint. Wongkhiao was sentenced to 55 months in prison, and Gilliland received a 15-month sentence on February 1, 2016. The court also ordered a $1,120,831 money judgment against both men, representing the proceeds of the fraud.
The CFTC advises that restitution orders do not guarantee full recovery of lost funds, as defendants may lack sufficient assets. The agency pledges continued efforts to protect customers and hold perpetrators accountable. The case was led by CFTC staff members Jonah E. McCarthy, Patricia Gomersall, Dmitriy Vilenskiy, and Paul G. Hayeck, with contributions from former staff Jonathan Robell and John Einstman.
The CFTC has issued warnings about the rising number of forex trading scams and encourages potential investors to be aware of the warning signs of fraud.
Source: CFTC.gov
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