PORTLAND, OR – Robert L. Adams, founder of SimTradePro Inc., is facing charges of fraud and operating an unregistered financial business, according to a civil enforcement action filed by the Commodity Futures Trading Commission (CFTC) in U.S. District Court for the District of Oregon. The CFTC alleges Adams and his company defrauded over 100 U.S. customers out of at least $2.3 million through a leveraged forex and metals trading scheme.
The complaint details that from February 2018 to April 2019, Adams solicited funds from pool participants, promising profits through forex and metals trading. However, the CFTC alleges the defendants failed to disclose fees paid to introducing brokers, falsely claiming they would only profit when the pools did. Customers were led to believe there were no hidden costs and that operational expenses were covered personally by Adams, a claim the CFTC disputes.
Furthermore, the CFTC claims Adams misled investors regarding substantial losses incurred in leveraged gold trading, failing to consult with them before locking in those losses – which ultimately totaled approximately $2 million of the investors’ money. SimTradePro acted as an unregistered commodity pool operator and trading advisor, soliciting and managing funds without proper registration, the complaint states.
The CFTC is seeking a broad range of penalties, including disgorgement of ill-gotten gains, civil monetary penalties, restitution for the victims, a ban on future trading and registration, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.
The investigation received assistance from international regulatory bodies, including the United Kingdom Financial Conduct Authority, the Oregon Division of Financial Regulation, the Australian Securities and Investments Commission, and the Central Bank of Ireland. The case is being prosecuted by Harry E. Wedewer, Mary Lutz, Patrick Marquardt, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan of the CFTC’s Division of Enforcement.
Source: CFTC.gov
Related Federal Cases
- Robert Guzman, Mail Fraud, NY 2024 · New York
- James Pavlounis, Social Security Disability Benefits Fraud, New Roc… · Washington
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2026 · New York
- Xi Hui “Steven” Wu Ordered to Pay $4.2M for Real Estate Fraud, New … · Washington
- Diana Petrovic, Drug Trafficking, D. Oregon, 2023 · Pennsylvania
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News