Chicago, IL – Coby Young and his firm, Young Emerging Strategies LLC, are facing charges of fraud following a complaint filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Northern District of Illinois. The complaint alleges a scheme involving the misappropriation of approximately $300,000 from investors in a retail foreign currency (forex) trading pool.
According to the CFTC, Young and his firm solicited individuals through a website, social media, and in-person classes, promising to double their investments through forex trading. From at least August 2019 through the present, the defendants allegedly operated a pool where funds from participants were meant to be used for forex trading. However, the CFTC claims the majority of the $300,000 received was instead used for personal expenses, cash withdrawals, and payments to other pool participants – effectively a misuse of investor funds.
The complaint details charges of fraud in connection with retail forex transactions, fraud as a commodity pool operator, registration violations, and failures to maintain proper disclosures and records. The CFTC also alleges that Young and Young Emerging Strategies LLC commingled pool property, further demonstrating financial mismanagement.
The CFTC is seeking restitution for defrauded pool participants, disgorgement of any ill-gotten gains, civil monetary penalties, and permanent bans from trading and registering with the CFTC. A permanent injunction to prevent further violations of the Commodity Exchange Act (CEA) and CFTC regulations is also being pursued.
The Federal Bureau of Investigation and the U.S. Attorney’s Office for the Northern District of Illinois assisted in the investigation. The CFTC’s Division of Enforcement team, led by Elsie Robinson, Monique McElwee, Nicholas Sloey, Christopher Reed, and Charles Marvine, is handling the case, with assistance from former intern Logan Jeffers.
The CFTC encourages the public to verify registration status of commodity trading companies through NFA BASIC and to report suspicious activity via their toll-free hotline (866-FON-CFTC) or online complaint form.
Source: CFTC.gov
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