The Commodity Futures Trading Commission (CFTC) has filed a civil complaint against Edwin Carrion, CEO of Technical Trading Team, LLC (TTT), and Jason Rodriguez, the company’s COO and head trader, alleging a $5 million forex fraud. The case, filed in the U.S. District Court for the Eastern District of New York, accuses the men of running a commodity pool scheme that preyed on unsuspecting investors.
Carrion, formerly of Pinecrest, Florida, and Rodriguez, of Bellerose, New York, are charged with fraud in connection with retail forex transactions, operating as an unregistered commodity pool operator (CPO), and related violations. The CFTC alleges that between January 2020 and the present, the defendants solicited investments from individuals not qualified as eligible contract participants, promising annual returns of 18% to 24% on their “loans” to the TTT pool.
According to the complaint, Carrion and Rodriguez falsely touted their forex trading expertise and the safety of the investment. They allegedly claimed to maintain a reserve fund equal to participant contributions, limit risk to 1% per trade, and avoid overnight positions. These assurances were demonstrably false, the CFTC asserts.
The defendants reportedly lost over $3.13 million trading forex on a leveraged basis. Instead of disclosing these losses, they falsely told pool participants they could recover the funds using artificial intelligence (AI) trading algorithms. Funds were also allegedly misappropriated for personal use and diverted from new investors to cover previous losses.
The CFTC is seeking a civil monetary penalty, full restitution for defrauded investors, disgorgement of ill-gotten gains, and permanent bans from trading and registration. They also request a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.
“As alleged, the defendants made false and misleading statements and promises about the safety and profitability of becoming a pool participant in the TTT commodity pool,” said Ian McGinley, Director of Enforcement at the CFTC. “As a result of entrusting their money to TTT in light of these false promises, pool participants lost millions of dollars.”
The complaint details that approximately $5 million was solicited from 27 pool participants. The investigation continues, and the CFTC aims to hold the defendants accountable for their alleged fraudulent activities.
Source: CFTC.gov
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