Daniel Winston LaMarco and his company, GDLogix Inc., are facing civil charges of forex fraud, commodity pool fraud, and failure to register with the Commodity Futures Trading Commission (CFTC), according to a complaint filed in the U.S. District Court for the Eastern District of New York. LaMarco, formerly of Huntington, New York, and GDLogix allegedly defrauded investors out of nearly $1.5 million.
The CFTC alleges that from January 2011 through March 2016, LaMarco solicited $1,492,650 from 13 individuals to invest in off-exchange leveraged forex contracts. He reportedly used word-of-mouth, email, and the internet to attract investors, falsely claiming successful personal forex trading results and a safe investment strategy. Investors came from New York, Connecticut, Massachusetts, and Ohio.
To maintain the scheme, LaMarco allegedly provided fabricated monthly statements to investors, falsely reporting profits and balances. The complaint states that he misappropriated funds, using them for personal expenses or losing them through unsuccessful trading. By February 2016, statements indicated a pool value of $1,797,126, but in reality, LaMarco had lost the majority of the invested funds and diverted $630,050 to earlier investors as a Ponzi scheme payout.
This case is connected to a criminal action where LaMarco previously pleaded guilty to one count of commodities fraud and one count of wire fraud. On February 3, 2017, he was sentenced to 42 months in prison and ordered to pay $872,600 in criminal restitution. The CFTC’s enforcement action seeks to further address the financial harm caused by LaMarco’s alleged fraudulent activities.
“This case is another example of a fraudulent investment scheme based on personal relationships,” stated James McDonald, Director of CFTC’s Division of Enforcement. “LaMarco targeted those with whom he made connections through his local community.”
Source: CFTC.gov
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