Fairfax, VA – Amrit Jaswant Singh Chahal, 43, of Fairfax, Virginia, is facing charges of commodity futures fraud and commodity pool fraud following a civil enforcement action filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Eastern District of Virginia on April 13, 2018. The CFTC alleges Chahal, along with his firm Kane Capital Investment Group, LLC, defrauded investors out of more than $1.2 million.
According to the complaint, from January 1, 2015, through December 31, 2017, Chahal and Kane Capital solicited funds from approximately 50 individuals to invest in a commodity pool trading E-mini Nasdaq 100, E-mini S&P 500, Cboe Volatility Index, and NYMEX West Texas Intermediate Light Sweet Crude Oil futures contracts. The CFTC alleges the trading activity was largely unprofitable, and Chahal attempted to conceal these losses by falsely reporting annual profits of 28% to 34% to investors.
The complaint further alleges Chahal doctored trading account statements using a .pdf editing tool to fabricate positive returns and attract further investment. He is also accused of operating a Ponzi scheme, using funds from new investors to make payments to earlier investors. The CFTC claims Chahal misappropriated investor funds to cover personal expenses, including rent, utilities, and credit card bills, commingling these funds with Kane Capital’s assets.
The CFTC is seeking full restitution for defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of federal commodities laws. In a related criminal action, Chahal has been indicted on nine counts, including four counts of commodities fraud, by the United States Attorney’s Office for the Eastern District of Virginia (case No. 18-cr-152).
The CFTC acknowledged the assistance of the U.S. Attorney for the Eastern District of Virginia, the Virginia State Corporation Commission, and the SEC Division of Enforcement in this matter.
Source: CFTC.gov
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