Erik J. Hass and his company, Simply Gains Inc., of Junction City, Oregon, are facing both civil and criminal charges for allegedly defrauding investors in a foreign currency (forex) commodity pool operation. The Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the United States District Court for the District of Oregon on June 11, 2020, accusing Hass and Simply Gains Inc. of fraud, misappropriation, and failure to register with the CFTC.
According to the complaint, the defendants solicited at least $2.1 million from at least 21 individuals to invest in their forex pool. Investors were allegedly assured they would not lose more than 20% of their deposited funds. However, the defendants reportedly lost over $1 million trading forex and misappropriated at least $415,000 for personal expenses, including Hass’s mortgage, credit card debt, and a Caribbean cruise.
The CFTC alleges that Hass and Simply Gains Inc. misled prospective investors about Hass’s experience and investment track record, promising profitability with limited risk. Furthermore, the complaint states that the defendants sent false account statements to pool participants to conceal their trading losses and misappropriation of funds.
The CFTC is seeking restitution for defrauded individuals, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act.
In a related criminal case, the United States Attorney for the District of Oregon indicted Hass on June 9, 2020, on five counts of wire fraud, two counts of mail fraud, and one count of money laundering. The case is United States v. Hass, 6:20-cr-00178 (D. Or.).
The CFTC acknowledged the cooperation of the United States Attorney’s Office for the District of Oregon and the Oregon Division of Financial Regulation in the investigation.
Source: CFTC.gov
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