Marietta, Georgia resident Jonathan A. Parker and his firm, QuantX Capital, LLC, have been ordered to pay $1.0215 million in penalties and restitution for defrauding investors in a foreign currency (forex) scheme, the Commodity Futures Trading Commission (CFTC) announced Wednesday.
Parker, CEO, President, and sole owner of QuantX, and the company were jointly and severally assessed a $680,000 civil monetary penalty. They are also required to pay $341,500 in restitution to at least eight individuals who invested with them. The CFTC order also imposes permanent trading and registration bans on both Parker and QuantX, effectively barring them from participating in the commodity futures market.
According to the CFTC, between November 2010 and October 2015, Parker and QuantX fraudulently solicited $341,500 from investors for a pooled investment fund purportedly focused on leveraged, off-exchange forex transactions. However, the CFTC found that none of the funds were actually deposited into a pooled account or used for legitimate forex trading. Instead, Parker and QuantX misappropriated the funds for both business and personal expenses.
The CFTC further alleges that Parker and QuantX fabricated account statements sent to investors, falsely claiming profitable forex transactions. They are accused of making other material misrepresentations to conceal the misuse of investor funds. Additionally, QuantX operated as an unregistered Commodity Pool Operator and Parker acted as an unregistered Associated Person, violating CFTC registration requirements.
The CFTC cautioned that victims may not fully recover their losses, as the defendants may lack sufficient assets. The agency stated it remains committed to protecting customers and holding perpetrators accountable. The National Futures Association (NFA) assisted in the investigation.
The case was led by CFTC staff members Michael P. Geiser, Alben Weinstein, David W. MacGregor, Lenel Hickson, Jr., and Manal M. Sultan.
The CFTC encourages anyone with information about potential commodity trading fraud to contact the agency via its toll-free hotline at 866-FON-CFTC or file a complaint online.
Source: CFTC.gov
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