Denver resident Breonna Clark, operating under multiple aliases including Eliot Clark and Alexander Pak, has been ordered to pay over $900,000 in restitution and penalties for running a Ponzi scheme targeting over 72 clients, the Commodity Futures Trading Commission (CFTC) announced Wednesday.
The U.S. District Court for the District of Colorado issued the judgment against Clark and her company, Venture Capital Investments LLC (VCI), finding them guilty of fraudulently soliciting funds for commodity pools supposedly trading in foreign exchange (forex) and digital assets like Bitcoin. Instead of legitimate trading, the court determined Clark misappropriated the $450,302 raised from investors.
According to the CFTC complaint filed in February 2020, Clark used social media to attract investors, promising consistent profits through a “master team of traders.” However, the funds were allegedly used for personal expenses, including a luxury vehicle, and to make Ponzi-style payments to earlier investors, creating the illusion of profitability and encouraging further investment.
The court’s order mandates Clark and VCI pay $450,302 in restitution to the defrauded clients, as well as a civil penalty of the same amount. They are also required to cover the CFTC’s legal costs. Furthermore, both Clark and VCI are permanently banned from trading in CFTC-regulated markets and from registering with the agency in the future.
The CFTC acknowledged assistance from financial regulators in Bulgaria, St. Vincent and the Grenadines, Seychelles, the United Kingdom, and New Zealand during the investigation. While the CFTC emphasizes that restitution orders don’t guarantee full recovery of lost funds, it reaffirms its commitment to protecting customers and holding perpetrators accountable.
The agency urges potential investors to verify a company’s registration with the CFTC before investing and to be wary of unregistered entities. Suspicious activity can be reported to the CFTC via its hotline at 866-FON-CFTC or through its online tip and complaint portal.
Source: CFTC.gov
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