Washington, DC – Edmund Hysni and his company, Atlantas Group, Inc., have been slapped with hefty penalties by the Commodity Futures Trading Commission (CFTC) for running a fraudulent scheme targeting futures contract investors. The CFTC issued an order on July 14, 2016, detailing charges of solicitation fraud and making false statements to investigators.
Hysni, of Waterford, Michigan, served as the sole owner and president of Atlantas, which operated out of the same city. Neither Hysni nor Atlantas were registered with the CFTC at the time of the alleged offenses.
The CFTC order mandates that Hysni and Atlantas, jointly, pay $5 million in restitution to defrauded customers and a $2.2 million civil penalty. They are also permanently prohibited from trading on any registered entity or registering with the CFTC, effectively barring them from all commodity-related activities.
Between 2006 and 2012, Hysni and Atlantas allegedly misled clients by promising a 300% return on investment, claiming a “safe and conservative” strategy and a history of success. In reality, customer funds were funneled into risky, out-of-the-money option spreads, resulting in significant losses. The company reportedly pocketed around 90% of these losses through commissions, without disclosing these charges to clients or the impact on their returns.
The investigation also revealed that Hysni knowingly provided false information to the National Futures Association (NFA) during their inquiry into the fraudulent activity. Specifically, Hysni allegedly lied about payments made to an unregistered associate.
The CFTC stresses that restitution orders do not guarantee full recovery of lost funds, as wrongdoers may lack sufficient assets. The agency vows to continue pursuing such cases to protect investors and hold perpetrators accountable. The NFA provided crucial assistance during the investigation.
Source: CFTC.gov
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