Joseph Carvajales, Forex Fraud, Florida 2024
Miami, FL – March 21, 2024 – Joseph Carvajales, a Florida resident, has been permanently banned from trading and registration following a consent order entered by the U.S. District Court for the Southern District of Florida on March 20. The Commodity Futures Trading Commission (CFTC) brought the case against Carvajales, alleging a fraudulent scheme targeting customers of The W Group (WTG).
Carvajales was ordered to pay $2.4 million in restitution to defrauded customers and a $1 million civil monetary penalty. The order also includes a permanent injunction prohibiting further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
According to the CFTC, between June 2013 and June 2020, Carvajales, an employee of WTG, knowingly made false statements to both current and prospective customers regarding futures, retail foreign currency contracts (forex), and options trading. These misrepresentations included claims about where WTG traded, the use of a trading algorithm, the opening of individual trading accounts, the deposit of customer funds, actual trading activity, and potential profit margins. The CFTC found that, in reality, no trading accounts were opened, no funds were deposited, and no trades were ever executed.
This case is connected to a prior default order against WTG and Larry Ramos Mendoza of Miami, Florida. That order revealed that WTG and Ramos misappropriated over $24 million from at least 220 customers, fraudulently soliciting investments with fabricated account statements showing non-existent profits and trading activity. WTG and Ramos were ordered to pay $7,482,680 in restitution and a $22,448,040 civil penalty, alongside similar trading and registration bans.
The CFTC advises that restitution orders do not guarantee full recovery of lost funds, as defendants may lack sufficient assets. The agency remains committed to protecting customers and holding perpetrators accountable. Individuals who suspect fraud are encouraged to report it to the CFTC.
Source: CFTC.gov
Source: https://www.cftc.gov/PressRoom/PressReleases/8882-24