CFTC fines Fraud scheme performer Jonathan A. Parker and his company QuantX Capital, requiring them to pay a civil monetary penalty and restitution totalling more than $1 million. Is your broker registered?
August 4, AtoZForex – The US Commodity Futures Trading Commission (CFTC) has been very active in targeting firms and individuals related to frauds and illegal trading activities. Just yesterday, the regulator has issued a press release requiring Jonathan A. Parker and QuantX Capital, LLC (QuantX) to pay more than $1 million for performing the fraud scheme.
CFTC fines Fraud scheme $1mln
To be more specific, CFTC’s Order demands Jonathan A. Parker and QuantX Capital to pay a $680,000 civil monetary penalty and restitution of $341,500. Additionally, the Order imposes the permanent trading and registration bans on both of them for “committing fraud and misappropriation in connection with operating a commodity pool that offered leveraged or margined off-exchange foreign currency (forex) transactions.”
Following on this, Mr. Parker appears to be a former CFTC registrant. He also is the CEO, President, and sole owner of QuantX and carries all the responsibility for firm’s activities. Furthermore, Order finds that from at least November 2010 till October 2015, Parker and QuantX have been swindling the investors.
They also obtained at least $341,500 from at least eight individuals, according to CFTC Order. Additionally, none of the obtained funds were ever deposited into a pooled account or used in any Forex transactions. The Order finds that “Parker and QuantX fraudulently misappropriated at least $341,500 of the funds for business and personal expenses.”
QuantX claimed to be a Commodity Pool Operator
Moreover, the Order also finds that Parker and QuantX designed and distributed false account statements to investors that claimed that “they had engaged on behalf of investors in retail forex transactions that were profitable and made other material misrepresentations to investors.”
Furthermore, QuantX was acting as a Commodity Pool Operator and Parker was acting as an Associated Person of QuantX without any registration from CFTC as it is required.
As CFTC fines Fraud scheme, the regulator reminds the investors in the Order:
“The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.”
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