The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Valdas Dapkus, of Illinois, and Tradewale LLC and Tradewale Managed Fund, alleging misappropriation and solicitation fraud. The case was filed in the U.S. District Court for the District of New Jersey on September 29, 2021.
The CFTC alleges that Tradewale, through its website tradewale.com and social media, fraudulently solicited at least 15 individuals to deposit over $700,000 into accounts managed by the company for forex trading. The company reportedly claimed to have a “unique trading system” utilizing “artificial intelligence” and promised average monthly returns of 4%-11% with yearly returns exceeding 55% and “minimal risk.”
According to the complaint, customers were largely unable to withdraw funds from their accounts. The CFTC asserts that Dapkus and Tradewale misappropriated these funds for unauthorized purposes, including through bank accounts established and solely controlled by Dapkus. Tradewale is also accused of failing to register as a Commodity Trading Advisor (CTA) with the CFTC.
The CFTC is seeking civil monetary penalties, trading and registration bans, restitution, disgorgement of ill-gotten gains, and a permanent injunction against the defendants, preventing further violations of the Commodity Exchange Act (CEA) and CFTC regulations. The agency further alleges that Tradewale is liable for Dapkus’ fraudulent actions as they occurred within the scope of his employment.
The case is being pursued by Katie Rasor, Christopher Giglio, David MacGregor, Lenel Hickson, and Manal Sultan of the CFTC’s Division of Enforcement. The CFTC urges the public to verify registration status of firms before investing and to report suspicious activity through its toll-free hotline or online complaint system.
Source: CFTC.gov
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