SARASOTA, FL – Federal regulators have filed charges against Michael J. DaCorta and seven others, alleging a $75 million foreign currency (forex) trading scheme that defrauded over 700 U.S. investors. The Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the Middle District of Florida on April 22, 2019, targeting DaCorta, Joseph S. Anile, II, Raymond P. Montie, III, Francisco “Frank” L. Duran, John J. Haas, along with entities Oasis International Group, Limited, Oasis Management, LLC, and Satellite Holdings Company.
The CFTC alleges the defendants operated a Ponzi-like scheme starting in 2011, fraudulently soliciting funds for pooled investments in retail forex. Between April 2014 and the present, the defendants reportedly collected approximately $75 million from investors for the “Oasis Pools”—Oasis Global FX, Limited and Oasis Global FX, SA—promising guaranteed returns and minimal risk.
According to the complaint, the defendants misrepresented the profitability and safety of the Oasis Pools, claiming a minimum 12% annual return, a history of monthly profits, and a zero-risk investment. In reality, the majority of investor funds were misappropriated. The CFTC claims only $21 million of the $75 million received was actually used for forex trading, and those funds were ultimately lost.
The agency alleges the defendants used over $28 million to make payments to earlier investors—a classic hallmark of a Ponzi scheme—and diverted more than $18 million for personal expenses. These expenses included real estate purchases in Florida, lavish vacations, sports tickets, pet supplies, family loans, and educational expenses. False account statements were allegedly issued to conceal the fraud.
On April 15, 2019, U.S. District Court Judge Virginia Covington issued a restraining order freezing the assets of the defendants and appointed Burton W. Wiandas as a temporary receiver to take control of the corporate and individual assets. Nine additional entities have been named as relief defendants, accused of receiving funds from the scheme.
“This action is among the latest examples of the CFTC’s coordination with other regulators and criminal authorities to aggressively and assertively root out fraud and bad actors involved in our markets,” said James McDonald, CFTC Director of Enforcement. “We will continue to hold accountable not just companies, but also individual wrongdoers.”
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil penalties, and a permanent ban on the defendants from engaging in commodity trading. The investigation is ongoing.
Source: CFTC.gov
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