BEVERLY HILLS, CA – Irina Feldman, along with companies Cindium Inc. and Einstein Exchange Group Inc., have been charged with solicitation fraud and misappropriation of funds by the U.S. Commodity Futures Trading Commission (CFTC), the agency announced Monday.
The CFTC alleges that from December 2015 through at least May 2016, Feldman, Cindium, and Einstein fraudulently solicited approximately $401,000 from at least 30 individuals for a commodity pool intended to trade foreign currency (forex) and commodity futures. However, investigators found no evidence that the funds were ever actually traded.
Instead, the CFTC claims the Respondents misappropriated the pool participants’ funds, using them to pay “monthly returns” to investors and to cover personal and business expenses. These expenses reportedly included travel, meals, car payments, traffic violations, and purchases at luxury retailers.
The Respondents allegedly lured investors with promises of guaranteed monthly returns ranging from 2% to 10%, and assurances that principal investments would never lose value, all advertised through an internet website. They presented loan agreements guaranteeing returns of 2% to 5%.
The CFTC also found that Cindium and Einstein operated as Commodity Pool Operators (CPOs) and Commodity Trading Advisors (CTAs) without the required registration with the agency. Feldman, as CEO, owner, and controlling person of the companies, is held liable for their violations.
As part of the settlement, Feldman, Cindium, and Einstein are jointly and severally required to pay $401,000 in restitution to the defrauded investors and a $200,000 civil monetary penalty. They are also permanently prohibited from trading on any registered entity and from registering with the CFTC in the future. The Order also requires them to cease and desist from violating the provisions of the Commodity Exchange Act and CFTC Regulations.
The CFTC cautions that victims may not fully recover their losses as the Respondents may lack sufficient assets. The agency says it will continue to pursue legal action against those who violate commodity trading laws.
The case was led by CFTC Division of Enforcement staff members Mark Picard, Katie Rasor, Christopher Giglio, Steven Ringer, Lenel Hickson.
Source: CFTC.gov
Related Federal Cases
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · Pennsylvania
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · Pennsylvania
- McKenzie Marie Earley, $10M Wire Fraud, C.D. California, 2023 · Pennsylvania
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Alabama
- Frank Hamilton Sentenced to 5.5 Years for SBA Scam, California, 2023 · Alabama
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News