Rene Larralde of Melbourne, Florida, along with three associates and their unincorporated entity, Fundsz, are facing charges of fraud following a complaint filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Middle District of Florida. The complaint alleges a fraudulent solicitation scheme targeting investors with promises of high returns through cryptocurrency and precious metals trading.
The CFTC alleges that from approximately October 2020 to the present, Larralde, Juan Pablo Valcarce of West Melbourne, Florida, Brian Early of New Orleans, Louisiana, and Alisha Ann Kingrey of Franklin, Arkansas, collectively operating as Fundsz, lured participants by falsely claiming consistent weekly returns exceeding 3% through a “proprietary algorithm.” They further misrepresented a seven-year history of accurate payments and projected a $2,500 investment could grow to $1 million within 48 months without further deposits.
According to the complaint, the defendants also falsely presented Fundsz as a charitable organization with the tagline “Fundsz For Your Cause,” implying contributions would support various humanitarian efforts. This deceptive marketing reportedly attracted over 14,000 participants. However, the CFTC asserts that Fundsz does not actually trade customer funds; instead, the defendants fabricated weekly returns to maintain the illusion of profitability.
On August 2, Judge Wendy Berger issued an ex parte statutory restraining order, freezing the defendants’ assets, preserving records, and appointing a temporary receiver. A hearing on the CFTC’s motion for a preliminary injunction is scheduled for August 23.
The CFTC is seeking restitution for defrauded investors, 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 (CEA). The agency cautioned that recovery of lost funds isn’t guaranteed, as wrongdoers may lack sufficient assets.
The case is being pursued by Douglas Snodgrass, Matthew Edelstein, Stacie Pan, Elizabeth M. Streit, Scott Williamson, and Robert Howell of the CFTC’s Division of Enforcement. The CFTC has issued fraud advisories regarding precious metals trading and urges the public to verify registration of companies before investing.
Source: CFTC.gov
Related Federal Cases
- Jesus Carlos Silva, Mail and Wire Fraud, Texas 2024 · Washington
- Live Nation, Antitrust Lawsuit, New York NY, 2024 · New Mexico
- William Burns, Child Rape, Ohio 2024 · Washington
- Amgen Pays $71M for Pushing Drugs Off-Label · New Mexico
- Amgen Inc, Pharmaceutical Misrepresentation, California 2024 · New Mexico
