A Georgia man has been ordered to pay over $110,000 in restitution and penalties after being found liable for commodity fraud, the Commodity Futures Trading Commission (CFTC) announced Friday. Kenzley Ramos, of Georgia, was hit with a default judgment by the U.S. District Court for the Northern District of Texas after a 2020 enforcement action.
The court found Ramos engaged in fraudulent solicitation, misappropriation of funds, operating an unlawful commodity pool, and failing to register with the CFTC. From at least December 2015, Ramos allegedly used online advertisements and aliases to solicit investors, falsely claiming to be a successful binary options and foreign currency (forex) trader capable of profiting from COVID-19 related market fluctuations.
According to the CFTC, Ramos offered to pool investor funds to trade binary options and forex, but instead misappropriated the money. The court found Ramos never actually had any trading accounts in these markets. He is required to pay $27,556 in restitution to victims and a civil penalty of $82,668. The order permanently prohibits Ramos from violating the Commodity Exchange Act and CFTC regulations, registering with the CFTC, and trading on CFTC-regulated markets.
This judgment concludes the CFTC’s litigation against Ramos. However, the CFTC cautions that victims may not recover all lost funds, as the defendant may lack sufficient assets. The agency emphasizes its ongoing commitment to protecting customers and holding wrongdoers accountable.
Ramos also faces a parallel criminal charge of commodities fraud in the U.S. Attorney’s Office for the Northern District of Texas. Additionally, the Texas State Securities Board issued a cease and desist order against him in April 2020, alleging securities fraud, misappropriation, and registration violations. The CFTC acknowledged the assistance of both agencies in the investigation.
Source: CFTC.gov
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