Emerson Pires, Commodity Fraud, Florida 2024

Fort Lauderdale, FL – Emerson Pires, a founder of Empires Consulting Corp., has been slapped with a massive financial penalty and permanent injunction following a CFTC investigation into a $100 million fraud scheme. The U.S. District Court for the Southern District of Florida entered a consent order against Empires Consulting, which operated under the name EmpiresX, on March 15, 2024.

The CFTC alleges that Empires Consulting defrauded investors in unlawfully operated commodity pools without proper registration. The company is accused of commingling participant funds and making false claims regarding its registration status, fund usage, pool size, and potential returns. The scheme reportedly began around September 2020, enticing individuals to trade commodity futures, options, and digital assets through EmpiresX.

Investors were allegedly given the option to participate in pools managed directly by the company’s head trader or through an automated “EX Bot.” However, the CFTC found that Empires Consulting misappropriated funds and ceased honoring withdrawal requests around November 2021.

The court order mandates Empires Consulting pay $32,178,397 in restitution and a civil monetary penalty of the same amount, totaling $64,356,794. The company is also permanently prohibited from violating the Commodity Exchange Act (CEA) and CFTC regulations. This order resolves claims initially filed by the CFTC on June 30, 2022.

The investigation was conducted in parallel with actions by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). The SEC resolved its claims against Empires Consulting in 2023, and the DOJ filed a criminal matter against certain company employees and officers in June 2022. The CFTC’s litigation against Pires’ co-defendants, Flavio Goncalves and Joshua Nicholas, is ongoing.

The CFTC expressed gratitude for the assistance provided by the SEC and the National Futures Association throughout the investigation. Ben Sedrish, Heather Dasso, Elizabeth N. Pendleton, Scott Williamson, Robert Howell, and former staff member Margaret Aisenbrey of the Division of Enforcement led the case.

Source: CFTC.gov

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