HOUSTON, TX – October 11, 2022 – Troy Mason of Grand Prairie, Texas, has been permanently banned from trading commodities after being found liable for fraudulent solicitation and failing to register with the Commodity Futures Trading Commission (CFTC). The U.S. District Court for the Southern District of Texas entered a consent order on October 7, 2022, outlining the penalties.
The CFTC initially filed a complaint against Mason and his company, Ztegrity, Inc., on June 9, 2021, alleging a scheme to defraud investors through an unregistered forex trading pool. The scheme, operating from approximately October 2019 to June 2021, marketed the pool – known as “The Black Club” and “The Forex Savings Club” – as a low-risk savings account offering high yields.
According to the court order, Mason falsely guaranteed the return of participants’ funds and promised “100% certainty” of profits generated through the pooled investments. Investigators found that Mason knew such guarantees were impossible in forex trading and failed to disclose that the operation lacked U.S.-based trading accounts. The defendants received over $460,000 from 411 participants.
As a result of the consent order, Mason and Ztegrity are required to pay $643,570 in restitution to victims of the fraud. Additionally, a $300,000 civil monetary penalty has been levied against them. The order permanently prohibits both Mason and Ztegrity from violating the Commodity Exchange Act and CFTC regulations, and includes a permanent ban on registration and trading activities.
The CFTC urges the public to verify the registration of individuals and companies before investing and to report any suspicious activity via their hotline at 866-FON-CFTC or through their online tip/complaint system. Whistleblowers may be eligible for financial rewards.
Source: CFTC.gov
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