Central Islip, NY – A New York federal court has ordered Dillon Michael Dean, of Longmont, Colorado, and his UK-registered company, The Entrepreneurs Headquarters Limited (TEH), to pay over $1.9 million in penalties and restitution for a fraudulent scheme involving Bitcoin. The judgment, filed on July 9, 2018, stems from a lawsuit brought by the Commodity Futures Trading Commission (CFTC).
Judge Sandra J. Feuerstein of the U.S. District Court for the Eastern District of New York found that Dean and TEH solicited approximately $499,264.04 worth of Bitcoin from at least 127 members of the public between April 2017 and January 2018. They falsely claimed the funds would be pooled and invested in binary options, but instead misappropriated the money.
The CFTC’s investigation revealed that Dean and TEH never registered with the agency as required, operating as an unregistered Commodity Pool Operator. They used websites, YouTube videos, and Facebook posts to lure investors with promises of high returns and claims of Dean’s expertise in options trading. These claims were entirely fabricated, and no legitimate trading occurred on behalf of investors.
As a result of the fraud, at least 120 customers suffered total losses of at least $432,184.79. The court’s order mandates that Dean and TEH jointly pay $432,184.79 in restitution and a $1,497,792.12 civil monetary penalty. They are also permanently banned from trading and registering with the CFTC, and are enjoined from further violations of the Commodity Exchange Act and related regulations.
The CFTC warns that victims may not recover their full losses, as the defendants may lack sufficient assets. The agency remains committed to protecting customers and holding fraudulent actors accountable. The case was pursued by the CFTC’s Division of Enforcement Virtual Currencies Task Force.
Source: CFTC.gov
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