Angel Fernando Collazo, of Salinas, Puerto Rico, has been charged with defrauding at least 18 individuals out of $1.7 million through a forex trading scheme, according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on May 4, 2011. Collazo operated the firm ACJ Capital, Inc. (ACJ) and allegedly solicited funds for off-exchange leveraged foreign currency trading.
The CFTC alleges that Collazo falsely portrayed ACJ as a successful and experienced forex firm, promising profitability and downplaying the substantial risks associated with leveraged forex trading. Customers granted Collazo authority to manage their accounts, but his trading consistently resulted in losses.
To conceal these losses, Collazo is accused of issuing false trading account statements to customers, creating the illusion of positive investment performance. When customers noticed discrepancies and reported losses on their online statements, Collazo allegedly claimed these were due to a computer malfunction, providing them with fabricated statements reflecting inflated balances.
Judge José A. Fusté of the U.S. District Court for the District of Puerto Rico issued an emergency order on May 4, 2011, freezing the assets of both Collazo and ACJ, and prohibiting the destruction of relevant financial records. The order was initially sealed.
The CFTC is seeking restitution for defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, and trading/registration bans, along with permanent injunctions against future violations of federal commodities laws. Additionally, on May 4, 2011, Collazo was indicted by the United States Attorney’s Office for the District of Puerto Rico on charges of wire fraud and commodities fraud.
The CFTC collaborated with the U.S. Attorney’s Office of the District of Puerto Rico and the United States Marshals Service throughout the investigation.
Source: CFTC.gov
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