Barry C. Taylor of Franklin, North Carolina, is facing charges of operating a multi-million dollar fraudulent scheme, according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on April 21, 2015. The CFTC alleges that Taylor, through his firms OTC Investments LLC and Forex Currency Trade Advisors, LLC, defrauded approximately 24 individuals out of more than $2.4 million.
The scheme, which ran from at least August 1, 2011, involved soliciting funds from members of the public in North Carolina, other U.S. states, and Canada to participate in a commodity pool trading leveraged foreign currency (forex) contracts. Judge Martin Reidinger of the U.S. District Court for the Western District of North Carolina, Asheville Division, issued an emergency restraining order on April 22, 2015, freezing the Defendants’ assets and prohibiting the destruction of records.
The CFTC complaint details that Taylor misappropriated pool participant funds for personal use and to conceal the fraudulent activity. He allegedly issued false account statements to cover up the scheme, falsely claiming profitable forex trading and failing to disclose that only a portion of the invested funds were actually traded. The remainder was allegedly used for personal expenses and distributed to earlier investors in a Ponzi-like manner.
The CFTC is seeking a return of ill-gotten gains, restitution for victims, civil monetary penalties, trading and registration bans, and permanent injunctions against future violations of federal commodities laws. The agency cautions that restitution orders do not guarantee full recovery of lost funds, as wrongdoers may lack sufficient assets. The case is being pursued in conjunction with the U.S. Attorney’s Office for the Western District of North Carolina and the Federal Bureau of Investigation.
JonMarc P. Buffa, Peter M. Haas, Patricia A. Gomersall, Tashieka Taylor, and Paul G. Hayeck of the CFTC Division of Enforcement are leading the litigation.
Source: CFTC.gov
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