Ralph Metters, formerly of Los Angeles, California, has been penalized $500,000 and ordered to disgorge the same amount for perpetrating a forex fraud, the U.S. Commodity Futures Trading Commission (CFTC) announced on August 12, 2016. The settlement stems from a Consent Order entered by Judge Manuel L. Real of the U.S. District Court for the Central District of California on August 8, 2016.
Metters, also known as Malachai “Moe” Levy, was charged with fraudulently soliciting $500,000 from an investor for off-exchange foreign currency transactions beginning in October 2013. The CFTC initially filed a complaint on August 20, 2014, alleging that Metters misrepresented how investor funds would be used and held.
According to the court order, Metters falsely claimed he would utilize investor money for forex investments and maintain the funds in escrow until authorized for use. However, investigators found that Metters withdrew the $745,000 invested without permission and misappropriated the funds. The Order permanently enjoins Metters from further violations of the Commodity Exchange Act (CEA) and imposes permanent trading and registration bans.
In a related criminal case, Metters pleaded guilty to conspiracy to commit wire fraud. On May 16, 2016, he was sentenced to 108 months of imprisonment and ordered to pay $500,000 in restitution to the victim involved in the CFTC case, as well as additional restitution to other victims of related criminal activities.
The CFTC cautions that victims may not recover their lost funds due to the defendant’s potential lack of assets. The agency continues to pursue enforcement actions to protect customers and hold wrongdoers accountable. The CFTC worked in conjunction with the U.S. Attorney’s Office for the Central District of California and the Federal Bureau of Investigation on this matter.
Source: CFTC.gov
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