Salida, CA – Eshaq M. Nawab, along with his companies Nawabi Enterprise and Hyperion Consulting Inc., are facing charges of fraud and misappropriation related to a foreign currency (forex) trading scheme, according to a complaint filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Eastern District of California. The defendants allegedly defrauded at least seven investors out of $543,000.
The CFTC alleges that from approximately October 2019 through the present, Nawab and his companies solicited funds for forex trading, falsely promising investors monthly returns of 8 to 25% with minimal risk. They claimed to have a history of generating substantial profits for both themselves and pool participants. However, the agency asserts that instead of trading the funds as promised, Nawab misappropriated the money for personal use and to pay earlier investors – effectively operating a Ponzi scheme.
To conceal the scheme, the defendants allegedly created and distributed false account statements that misrepresented trading returns. When investors requested withdrawals, the CFTC claims Nawab either ignored the requests, offered false promises, or delayed payouts.
On April 28, 2022, Chief District Judge Kimberly J. Mueller issued a Statutory Restraining Order, freezing the defendants’ assets and allowing the CFTC access to their financial records. A hearing for a Preliminary Injunction was scheduled for May 11, 2022.
The CFTC is seeking full restitution for the defrauded investors, disgorgement of any ill-gotten gains, a civil monetary penalty, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act. The agency cautions that recovery of funds is not guaranteed, as defendants may lack sufficient assets.
The CFTC acknowledged the assistance of the U.S. Marshals in the Eastern District of California. The case is being pursued by CFTC staff members W. Damon Dennis, Sarah Wastler, Maura Viehmeyer, Erica Bodin, James H. Holl, III and Rick Glaser.
The CFTC also reminds the public to verify a company’s registration before investing and provides resources to identify and avoid forex fraud.
Source: CFTC.gov
Related Federal Cases
- Christopher Guilford, Tax Refund Scheme, Sacramento CA, 2025 · Alabama
- Frank Hamilton Sentenced to 5.5 Years for SBA Scam, California, 2023 · Alabama
- Amy Evangelista Sentenced to 18 Months for Tax Fraud Scheme, Lathro… · California
- Two Foreign Nationals, ID Theft Scheme, Los Angeles CA, 2023 · Florida
- Frank Hamilton, Loan Shark Scheme, CA, 2023 · Pennsylvania
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News