A Georgia man is facing federal and state charges after allegedly defrauding investors with promises of massive returns tied to the COVID-19 pandemic. Kenzley Ramos was arrested and charged with commodities fraud by the U.S. Attorney’s Office for the Northern District of Texas, according to a complaint filed with the U.S. District Court for the Northern District of Texas by the Commodity Futures Trading Commission (CFTC).
The CFTC complaint accuses Ramos of fraudulent solicitation, misappropriation of funds, operating an unlawful commodity pool, and failing to register with the agency. Authorities allege Ramos falsely advertised the ability to profit from the pandemic by trading off-exchange foreign currency (forex) and binary options, guaranteeing weekly returns of 300 percent.
According to the complaint, Ramos used online advertisements and aliases to solicit funds from individuals nationwide, incorporating the pandemic into his pitches earlier this year. He allegedly misrepresented himself as an experienced and successful trader capable of generating profits even during market downturns. However, the CFTC claims Ramos never actually traded the funds; instead, he misappropriated them for his own use, and does not possess any U.S.-based binary options or forex trading accounts.
The Texas State Securities Board previously issued an emergency cease and desist order against Ramos, alleging securities fraud, misappropriation, and registration violations. Despite receiving this order, the CFTC alleges Ramos continued his fraudulent scheme.
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 case represents the CFTC’s second enforcement action related to pandemic-linked fraud. The CFTC acknowledged the assistance of the U.S. Attorney’s Office and the Texas State Securities Board in the investigation.
Consumers are urged to verify the registration of any individual or company offering investment opportunities with the CFTC before providing funds. Resources, including fraud advisories related to commodity pools and forex trading, are available on the CFTC’s website.
Source: CFTC.gov
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