A Florida man and his company have been slapped with a hefty penalty for running a multi-million dollar forex scheme. Judge Carlos E. Mendoza of the U.S. District Court for the Middle District of Florida issued a default judgment against Avinash Singh and Highrise Advantage, LLC, on December 20, 2023.
The Commodity Futures Trading Commission (CFTC) initially filed a civil enforcement action against Singh, Highrise, and eight other defendants on September 9, 2020. The amended complaint, filed February 4, 2021, detailed a complex, off-exchange foreign currency scheme involving a master commodity pool and four feeder pools.
The court found that Singh fraudulently solicited funds through Highrise and the feeder pools, failing to register with the CFTC and violating regulations governing commodity pools. Investigators determined that Highrise and Singh collected nearly $58 million from investors, but only allocated less than $2.5 million to actual forex trading. Over $25 million was allegedly misappropriated, used for Ponzi-type payments to earlier investors, and to cover personal expenses.
The judgment orders Singh and Highrise to pay $25,558,594 in restitution to defrauded investors and $76,675,782 in civil monetary penalties. They are also permanently banned from registering with the CFTC and trading on any registered entity. Consent orders were previously entered against operators of the feeder pools – SR&B Investment Enterprises, Inc., Green Knight Investments, LLC, Bull Run Advantage, LLC, and King Royalty, LLC – and their operators Surujpal Sahdeo, Daniel Colegero, Randy Rosseau, and Hemraj Singh, fully resolving that portion of the litigation.
Adding to the legal woes, Singh was indicted by the U.S. Attorney for the Middle District of Florida on February 17, 2021, on ten counts of wire fraud and six counts of money laundering. Singh became a fugitive, but was apprehended in Florida on October 19, 2023, and the criminal case remains pending before Judge Mendoza and Magistrate Judge Robert M. Norway.
The CFTC cautioned that victims may not fully recover their losses, as the defendants may lack sufficient assets. The agency emphasized its commitment to protecting customers and holding wrongdoers accountable. The investigation received assistance from international regulatory bodies, including the Cyprus Securities and Exchange Commission, the United Kingdom Financial Conduct Authority, and the Australian Securities and Investments Commission.
Source: CFTC.gov
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