Washington, D.C. – Avinash Singh, a Florida resident, has been charged with orchestrating a $4.75 million Ponzi scheme involving off-exchange foreign currency (forex) trading, the Commodity Futures Trading Commission (CFTC) announced on September 16, 2020. The civil enforcement action was filed in the United States District Court for the Middle District of Florida.
Singh, along with nine other defendants, allegedly fraudulently solicited funds through a master commodity pool called Highrise Advantage, LLC. Also charged were Daniel Cologero and Randy Rosseau, both of Florida, and Hemraj Singh of New Jersey, for soliciting funds for Highrise through their respective commodity pools: Green Knight Investments, LLC, Bull Run Advantage, LLC, and King Royalty, LLC. Surujpaul Sahdeo, a Florida resident, and his company SR&B Enterprises were accused of unlawfully soliciting client funds and transferring them to Highrise.
U.S. District Court Judge Carlos E. Mondoza issued a statutory restraining order on September 16, 2020, freezing the assets of Singh, Highrise, Green Knight, Bull Run, King Royalty, and SR&B. The order also prevents the defendants from destroying or concealing their financial records.
According to the CFTC’s complaint, the scheme began around February 2013 and targeted over 150 victims. Singh allegedly falsely claimed to be a successful commodities trader with a consistent history of profits. Cologero, Hemraj Singh, and Rosseau are accused of further misrepresenting Highrise’s profitability and downplaying the risks to potential investors. The CFTC alleges that only $1,656,000 of the $4.75 million raised was actually traded in forex, with at least $3 million misappropriated for personal expenses, transfers to other defendants, and Ponzi-style payments to earlier investors.
The defendants are accused of issuing falsified monthly account statements to investors, inflating profits and balances. SR&B allegedly received $1,350,000 from victims before transferring the funds to Highrise to finance forex trading. All defendants are also charged with failing to register with the CFTC and violating other regulatory requirements for operating commodity pools.
The CFTC is seeking full restitution for defrauded victims, disgorgement of ill-gotten gains, civil monetary penalties, a permanent injunction against future violations of the Commodity Exchange Act, and permanent bans on registration and trading. The agency acknowledged assistance from the United Kingdom Financial Conduct Authority and the Australian Securities and Investments Commission in the investigation.
Source: CFTC.gov
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