GRAND PRAIRIE, TX – Troy Mason of Grand Prairie, Texas, and his company, Ztegrity, Inc., formerly of Houston, have been slapped with hefty penalties and permanent bans following a CFTC enforcement action, according to court documents filed in the Southern District of Texas. The U.S. District Court entered a consent order on October 7, resolving charges of fraudulent solicitation and failure to register as required by federal commodity trading laws.
The CFTC initially filed its complaint against Mason and Ztegrity on June 9, 2021, alleging the pair operated a fraudulent forex trading pool marketed as a low-risk savings account alternative. Dubbed “The Black Club” and “The Forex Savings Club,” the scheme reportedly attracted over $460,000 from 411 participants between October 2019 and June 2021.
Investigators found Mason and Ztegrity falsely promised participants “guaranteed” repayment of their contributions and a “100% certainty” of receiving profits generated through forex trading. The CFTC contends these claims were knowingly false, as no forex trader can guarantee profits or the return of invested capital. Furthermore, the defendants allegedly failed to disclose they did not maintain any U.S.-based forex trading accounts.
The consent order mandates Mason and Ztegrity pay $643,570 in restitution to defrauded investors. They are also assessed a $300,000 civil monetary penalty. Beyond the financial sanctions, the order permanently prohibits the defendants from violating the Commodity Exchange Act (CEA) and CFTC regulations, and imposes permanent bans on registration and trading in commodity markets.
The case was led by CFTC staff members Kyong J. Koh, Lauren Bennett, Luke B. Marsh, and Paul G. Hayeck. The CFTC urges the public to verify the registration of individuals and companies offering commodity trading services and provides resources for reporting suspicious activity via its hotline (866-FON-CFTC) or online complaint form.
Source: CFTC.gov
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