New York, NY – Jason Amada and his firm, Amada Capital Management LLC, have been slapped with a consent judgment by the U.S. District Court for the Southern District of New York for running a fraudulent forex trading scheme. The CFTC originally filed the enforcement case on August 29, 2018, alleging the pair misappropriated over $680,000 from at least 18 clients.
The court order mandates Amada and his company pay $596,700 in restitution to the victims defrauded by the scheme. Furthermore, both are permanently banned from registering with the CFTC, claiming exemptions, or trading on CFTC-regulated markets.
According to the CFTC, from October 2013 through December 2018, Amada presented Amada Capital Management LLC as a legitimate commodity trading advisor, soliciting investments for forex accounts. However, he allegedly misrepresented his trading experience and profitability. Clients received fabricated account statements showing profits when, in reality, minimal and unsuccessful trading occurred. The vast majority of client funds were diverted for personal and business expenses, including dining, rent, and even fantasy sports wagers.
The defendants also failed to register with the CFTC as required by law. This lack of oversight allowed the fraudulent activity to continue unchecked for several years.
This CFTC action is not the only legal trouble for Amada. The New York State Office of the Attorney General successfully prosecuted Amada on felony charges of grand larceny and operating a scheme to defraud. He was sentenced to a prison term of three to six years on November 21, 2019.
The CFTC warns that restitution orders do not guarantee full recovery of lost funds, as defendants may lack sufficient assets. The agency vows to continue its efforts to protect customers and hold those who commit fraud accountable. The CFTC acknowledged the cooperation of the UK Financial Conduct Authority and the New York State Office of the Attorney General in the investigation.
Source: CFTC.gov
Related Federal Cases
- Christopher Ferguson, Scheme to Inflate Order Numbers, New York NY,… · Washington
- John Smith Pleads Guilty to $1B Embezzlement Scheme, New York NY, 2023 · Alabama
- OneMain Financial, Debt Trap Scheme, New York NY, 2023 · Pennsylvania
- GoFundMe, Charity Scam Scheme, New York NY, 2023 · Virginia
- John F. Rivers, Car Theft Scheme, New York, 2023 · Florida
