Jeremy Spence of New York is facing federal charges after the Commodity Futures Trading Commission (CFTC) filed a civil enforcement action alleging a $5 million Ponzi scheme involving digital assets. The complaint, filed January 26, 2021, in the U.S. District Court for the Southern District of New York, accuses Spence of fraudulently soliciting investments in bitcoin and ether through an operation known as “Coin Signals.”
According to the CFTC, Spence’s trading ventures resulted in substantial losses. Rather than disclosing these losses, he allegedly operated a Ponzi scheme, using funds from new investors to pay supposed profits to earlier investors. The CFTC alleges Spence misrepresented his trading performance, the value of assets under management, and misappropriated customer funds. He is also accused of issuing false performance statements to conceal the scheme.
“Fraudulent schemes, like that alleged in this case, undermine the integrity and development of digital asset markets and cheat customers out of their hard-earned money,” stated Acting Director of Enforcement Vincent McGonagle. “We will continue to work to protect participants in our markets from fraudulent practices and hold fraudsters accountable.”
In addition to the CFTC’s civil action, Spence was also charged with a federal criminal complaint in the Southern District of New York on the same day. The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation in this matter.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against Spence to prevent further violations of the Commodity Exchange Act and CFTC regulations. The amount of penalties and restitution will be determined by the court. Spence eventually admitted to customers that he had engaged in “lies and deceit,” according to the complaint.
The case is being prosecuted by Elizabeth C. Brennan, Gates S. Hurand, Christopher Giglio, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan of the CFTC’s Division of Enforcement.
Source: CFTC.gov
Related Federal Cases
- Christopher Ferguson, Securities Fraud, New York 2020 · Ohio
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
- Sark Wire Corporation, PPP Loan Fraud, New York 2023 · Ohio
- Sark Wire Corporation, PPP Loan Fraud, New York 2020 · New York
- James Pavlounis, Social Security Disability Benefits Fraud, New York 2025 · Oregon
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News