Deepak Singhal, Fraud, California 2012

CHICAGO, IL – January 12, 2012 – The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil complaint against Deepak Singhal, a resident of Mountain View, California, alleging fraudulent commodity options trading. The complaint, filed January 9, 2012, in the U.S. District Court for the Northern District of Illinois, also names Singhal’s mother, Meera Singhal, who resides in India, as a co-defendant.

The CFTC alleges that between December 16, 2010, and December 29, 2010, Deepak Singhal engaged in 424 non-competitive and fictitious trades involving foreign currency options on the Chicago Mercantile Exchange (CME). These transactions are alleged to be in violation of the Commodity Exchange Act and CFTC regulations regarding competitive trading.

According to the complaint, the scheme facilitated the transfer of at least $118,868.75 in profits from Deepak Singhal’s account to the account of his mother, Meera Singhal. The CFTC asserts that these transfers represent ill-gotten gains derived from the illegal trading activity.

The CFTC is seeking a range of penalties, including the return of all illegally obtained profits, restitution for any losses incurred, civil monetary penalties, and a permanent ban on both defendants from trading and registering with the CFTC. The agency also seeks permanent injunctions to prevent future violations of federal commodities laws.

The case is being pursued by the CFTC’s Division of Enforcement, with staff members Dmitriy Vilenskiy, A. Daniel Ullman II, Timothy Mulreany, Sophia Siddiqui, Elizabeth Pendleton, Elizabeth Padgett, Paul G. Hayeck, and Joan Manley leading the investigation.

As of today, no criminal charges have been filed. This is a civil enforcement action.

Source: CFTC.gov

Source: https://www.cftc.gov/PressRoom/PressReleases/6168-12