Joshua Gilliland, of Florida, along with co-defendant Chawalit Wongkhiao and their company Allied Markets, LLC, were found to have operated a fraudulent foreign currency trading (forex) pool, according to a judgment entered by the U.S. District Court for the Middle District of Florida on October 30, 2019. The U.S. Commodity Futures Trading Commission (CFTC) brought the enforcement action.
The court ordered Allied Markets to pay a $1.2 million civil penalty and $1.2 million in restitution to its defrauded clients. The company is also permanently banned from engaging in any commodity-related activity and violating provisions of the Commodity Exchange Act (CEA) and CFTC regulations. This judgment follows a prior judgment on March 4, 2019, against Gilliland and Wongkhiao individually, imposing similar bans.
The case originated from a CFTC complaint filed on January 5, 2015, alleging fraudulent solicitation and misappropriation of funds from investors in the illegal commodity pool. The court found that Gilliland, Wongkhiao, and Allied Markets violated anti-fraud provisions and registration requirements of the CEA and CFTC regulations.
Evidence presented to the court showed the defendants made numerous misrepresentations to investors and used customer funds for personal expenses, including gym memberships and luxury vehicle rentals. Furthermore, both Gilliland and Wongkhiao faced criminal charges in a parallel case, pleading guilty to conspiracy to commit wire fraud. Wongkhiao was sentenced to 55 months in prison, and Gilliland received a 15-month sentence on February 1, 2016. A money judgment of $1,120,831, representing the proceeds of the fraud, was also levied against them.
The CFTC advises potential victims that restitution orders do not guarantee full recovery of lost funds, as the defendants may lack sufficient assets. The agency stated its commitment to protecting customers and holding wrongdoers accountable.
Source: CFTC.gov
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