Purvesh Mankad, Commodity Fraud, Arizona 2021

PHOENIX, AZ – The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Purvesh Mankad and his affiliated companies, CTAX Series, LLC, and CTAX Partners, LLC, alleging a multi-million dollar fraud scheme targeting investors in a commodity pool. The case, filed in the U.S. District Court for the District of Arizona, accuses Mankad of fraudulent solicitation, misappropriation of funds, and making false statements to the National Futures Association (NFA).

The CFTC alleges that from approximately July 25, 2014, to March 22, 2019, Mankad misrepresented the experience of traders managing the CTAX Series 1, LLC commodity pool (CTAX Pool). Despite claiming experienced Commodity Trading Advisors (CTAs) would handle the funds, Mankad, who lacked significant trading experience, allegedly conducted most, and eventually all, of the trading himself. This trading ultimately resulted in the loss of approximately 89% of the pool’s assets, totaling over $1.9 million in losses for investors.

The complaint further details accusations that Mankad and CTAX Partners misappropriated funds by charging excessive brokerage commissions triggered by his unauthorized trading. To conceal these losses, the defendants allegedly delayed the delivery of monthly account statements to pool participants and falsified emails submitted to the NFA during an audit, creating the illusion of timely reporting.

In a related action, the CFTC also settled charges against Paul Ohanian, an SEC-registered investment advisor based in Scottsdale, Arizona, and his firm, Scottsdale Wealth Planning, Inc. Ohanian and Scottsdale Wealth were found to have intentionally or recklessly omitted material facts from communications with clients who invested in the CTAX Pool, and for failing to register as Commodity Trading Advisors (CTAs) with the CFTC.

Ohanian and Scottsdale Wealth have agreed to pay $338,000 in restitution and a $169,000 civil monetary penalty. They are also barred from trading in commodity interests, registering with the CFTC, or engaging in related activities for four years. The CFTC is seeking restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations from Mankad, CTAX Series, and CTAX Partners.

Source: CFTC.gov

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