A U.S. District Court in North Carolina has permanently banned Storm Bryant, Elijah Bryant III, and their three companies – CapitalStorm LLC, GenerationBlack LLC, and Ncome LLC – from trading in commodity markets following a CFTC investigation into a $1.9 million foreign currency fraud. The court issued an order for summary judgment and a permanent injunction on December 11, 2024.
The Bryants, formerly of Raleigh, North Carolina and Los Angeles, operated the fraudulent scheme from March 2018 to September 2021. The CFTC complaint, initially filed in September 2021, alleged the defendants acted as unregistered commodity trading advisors, mishandled client funds, and failed to maintain proper books and records. They also allegedly acted as unregistered associated persons of a CTA.
The scheme targeted clients ineligible to participate in certain contracts, soliciting funds for off-exchange forex trading with high leverage. The defendants misappropriated over $1.9 million from 233 clients, using approximately $664,000 to pay earlier investors in a Ponzi-like fashion. They made false claims regarding fund usage, trading success, and returns, while failing to disclose that no client accounts were ever opened or actively traded. Accounts shown to clients were reportedly demo accounts.
The court order mandates the Bryants and their companies, jointly and severally, pay $1.3 million in restitution to victims and a $3.9 million civil monetary penalty. A previous asset freeze from 2021 has been partially lifted to allow for the transfer of assets to satisfy these financial obligations.
The CFTC warns that victims may not fully recover their funds due to the potential lack of available assets. The agency stated it will continue to pursue legal action against those who violate commodity trading regulations.
Source: CFTC.gov
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