Chicago, IL – November 3, 2023 – Coby Young of Illinois is facing federal charges of fraud, registration violations, and misappropriation of funds 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 Young and his firm, Young Emerging Strategies LLC, engaged in fraudulent practices related to retail foreign currency (forex) trading.
According to the CFTC, from at least August 2019, Young directly solicited investors through online platforms, social media, and in-person meetings to participate in forex trading classes. He then allegedly convinced some participants to invest in a forex trading pool he operated, promising to double their investments. The CFTC alleges that Young misappropriated approximately $300,000 from pool participants, using the funds for personal expenses, cash withdrawals, and payments to other investors – effectively operating a Ponzi-like scheme.
The complaint further details that Young failed to register with the CFTC as a commodity pool operator, did not provide necessary disclosures to investors, and failed to maintain required records. These violations of the Commodity Exchange Act (CEA) and CFTC regulations form the basis of the agency’s legal action.
The CFTC is seeking restitution for the harmed investors, disgorgement of any ill-gotten gains, civil monetary penalties, and a permanent ban on Young’s future trading and registration activities. The agency is also requesting a permanent injunction to prevent further violations of the CEA and related regulations.
The Federal Bureau of Investigation and the U.S. Attorney’s Office for the Northern District of Illinois assisted the CFTC in this matter. The case is being pursued by Elsie Robinson, Monique McElwee, Nicholas Sloey, Christopher Reed, Charles Marvine, and former intern Logan Jeffers of the CFTC’s Division of Enforcement.
The CFTC urges the public to exercise caution when engaging in forex trading and to verify the registration status of any firm or individual offering investment advice. Information and resources regarding forex and commodity pool fraud are available on the CFTC’s website.
Source: CFTC.gov
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