DALLAS, TX – Kenzley Ramos, a resident of Georgia, has been arrested and faces charges of commodities fraud following a joint investigation by the Commodity Futures Trading Commission (CFTC) and the U.S. Attorney’s Office for the Northern District of Texas. The complaint, filed in U.S. District Court for the Northern District of Texas on September 28, 2020, alleges Ramos engaged in fraudulent solicitation, misappropriation of funds, operating an unlawful commodity pool, and failing to register with the CFTC.
According to the CFTC, Ramos lured investors with false promises of substantial weekly returns – specifically, a guaranteed 300 percent profit – by trading off-exchange foreign currency (forex) and binary options. The scheme notably incorporated the COVID-19 pandemic into its marketing, falsely suggesting investors could profit despite overall market downturns.
The complaint details that from at least December 2015 through the present, Ramos used online advertisements and aliases to solicit funds from individuals nationwide. He misrepresented himself as a highly experienced and successful trader, but allegedly has no U.S.-based binary options or forex trading accounts. Instead of trading the pooled funds, Ramos is accused of misappropriating the money for personal use.
Despite receiving a cease and desist order from the Texas State Securities Board regarding similar fraudulent activity, Ramos allegedly continued to solicit funds and operate the scheme. This parallel action by the Texas State Securities Board alleged securities fraud, misappropriation, and registration violations.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations. The U.S. Attorney’s Office has filed a criminal charge of commodities fraud against Ramos.
James McDonald, Director of the CFTC’s Division of Enforcement, stated the agency will continue to monitor markets and pursue individuals exploiting the pandemic for illegal gain. The CFTC advises the public to verify registration of companies and individuals before investing and provides resources to identify potential fraud schemes.
Source: CFTC.gov
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