Los Angeles resident Jin Choi and his companies Apuro Holdings Ltd, JCI Holdings USA, and JCI Trading Group, LLC have been slapped with a default judgment by the U.S. District Court for the Central District of California for running a fraudulent foreign currency (forex) scheme. The Commodity Futures Trading Commission (CFTC) brought the case, alleging the defendants defrauded customers in the United States, Australia, Indonesia, and other locations.
Judge Dolly M. Gee entered the judgment on March 5, 2019, ordering Choi and his companies, jointly and severally, to pay $1,121,672 in restitution to victims and a $1,121,672 civil penalty. The judgment also permanently bans them from trading and registering with the CFTC, prohibiting further violations of the Commodity Exchange Act and related regulations. The CFTC initially filed a complaint against the defendants on May 14, 2018.
According to the court order, from January 2014 through the present, Choi and his firms fraudulently solicited at least $1,145,672 from fourteen individuals, promising to trade forex on their behalf. However, the CFTC found no evidence customer funds were actually used for trading. Instead, the defendants allegedly misappropriated the funds to finance Choi’s lavish lifestyle and operate a Ponzi scheme, distributing approximately $24,000 to some customers as fake “profits.”
The defendants are accused of making false claims to investors, including guaranteeing annual returns of 20%-50% paid quarterly, and falsely representing that Apuro was registered with the CFTC. The CFTC determined Apuro and JCI were operating as unregistered commodity trading advisors (CTAs), and Choi was acting as an unregistered associated person.
The CFTC cautions that victims may not recover their lost funds, as the defendants may lack sufficient assets. The agency stated it will continue to pursue accountability in cases of fraud. The case was led by CFTC staff members Danielle Karst, Timothy J. Mulreany, George H. Malas, Anthony Homer, and Paul G. Hayeck.
The CFTC encourages anyone with information about potential commodity trading violations to contact the Division of Enforcement via its toll-free hotline at 866-FON-CFTC (866-366-2382).
Source: CFTC.gov
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