Damian Castilla, Commodity Fraud, Florida 2022
Miami resident Damian Castilla is facing charges of commodity fraud following a civil enforcement action filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Southern District of Florida on May 17, 2022. Castilla, along with his companies DCAST Capital Investments LLC and Five Traders LLC, allegedly defrauded at least 50 investors out of approximately $3.4 million through commodity pools.
According to the CFTC complaint, Castilla and his companies falsely claimed to be generating significant profits through commodity futures trading on behalf of pool participants. However, the limited trading conducted was not profitable. Instead, the defendants allegedly misappropriated the majority of the invested funds for personal expenses, including car payments, home remodeling, lawn care, clothing, and dining.
The scheme further involved the issuance of false account statements displaying profitable trading in nonexistent accounts. Funds obtained from new pool participants were also used to pay fake profits to earlier investors, creating a Ponzi-like structure. The CFTC is seeking restitution, monetary penalties, disgorgement of ill-gotten gains, and a permanent ban on Castilla’s future trading and registration activities.
The CFTC cautions potential victims that recovering lost funds through restitution orders is not guaranteed, as the defendant may lack sufficient assets. The agency emphasizes its commitment to protecting customers and holding those who violate commodity trading laws accountable. The case is being pursued by Nicholas Sloey, Elsie Robinson, Thomas Simek, Christopher Reed, and Charles Marvine of the CFTC’s Division of Enforcement.
The CFTC encourages the public to verify the registration of any company offering commodity pool investments through the NFA BASIC system. Individuals with information about suspicious activity are urged to contact the CFTC via its toll-free hotline at 866-FON-CFTC, submit a tip online, or contact the Whistleblower Office, which offers potential rewards for information leading to successful enforcement actions.
Source: CFTC.gov
Source: https://www.cftc.gov/PressRoom/PressReleases/8531-22