Las Vegas resident Cody Ryan Porter and his company, KatchPips FX LLC, have been charged with misappropriating over $187,000 from at least 18 individuals through a fraudulent forex commodity pool scheme, according to a settlement order issued by the Commodity Futures Trading Commission (CFTC) on September 28, 2021.
The CFTC alleges that from October 2019 through May 2021, Porter and KatchPips FX solicited funds from customers with promises of monthly returns ranging from 3 to 10 percent. Investors were led to believe their money would be traded through a registered retail forex dealer. However, the agency found that Porter instead used the majority of the funds for personal expenses, including food, rent, and vacations.
Neither Porter nor KatchPips FX were registered with the CFTC as required, despite operating a commodity pool. As a result of the fraudulent scheme, customers suffered losses totaling over $187,000.
The settlement requires Porter and KatchPips FX to jointly pay a $187,240 civil monetary penalty and $187,240 in restitution to the defrauded customers, plus any accrued post-judgment interest. Additionally, both Porter and the company are permanently banned from trading on or through any CFTC-registered entity and from engaging in any activities requiring CFTC registration.
The CFTC cautions that restitution orders do not guarantee full recovery of lost funds, as wrongdoers may lack sufficient assets. The agency encourages anyone who suspects fraudulent activity to report it via the toll-free hotline 866-FON-CFTC, online tip submission, or through the Whistleblower Office.
The case was led by CFTC staff members Patricia Gomersall, Jason Gizzarelli, Traci Rodriguez, and Paul G. Hayeck.
Source: CFTC.gov
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