CFTC Fraud investigation: Atlantas misled NFA


July 15, AtoZForex - The U.S. Commodity Futures Trading Commission (CFTC) has demanded Atlantas Group, Inc. (Atlantas) and Edmund Hysni to pay $7.2 Million in penalty and restitution. The CFTC fraud investigation revealed Atlantas' involvement with committing solicitation fraud, related to options on futures contracts that were traded on the Chicago Board of Trade and the Commodity Exchange. Moreover, Hysni was caught providing the National Futures Association (NFA) with false materials during the investigation.

Edmund Hysni was the sole owner and the president of Atlantas, which resided in Waterford. Based on the CFTC fraud investigation, Atlantas and Edmund Hysni are obliged to pay a restitution of $5 million, along with a $2.2 million penalty. According to the Commodity Exchange ACT (CEA), both Atlantas and Hysni are now banned to trade on any registered entity. Also, they are not allowed to register with the CFTC nor be involved in any commodity-related activities.

False claims of Atlantas: 300% ROI

Between 2006 and 2012, Atlantas and Edmund Hysni were providing clients with false information. First of all, Atlantas made unrealistic promises of 300% ROI on the clients' initial investments. Secondly, the company misled its clients by claiming that their investment strategy was solid and conservative. Lastly, they used false records of success, to convince potential customers.

Moreover, the investigation reveals that the clients’ funds were invested in out-of-the-money option spreads, which caused losses for the firm’s customers. According to the CFTC, Atlantas didn’t reveal their actual strategy, since it would have a bad impact on clients’ profits and losses. Furthermore, they withheld the commissions that the company was charging to the clients.

Hysni misled the NFA

During the CFTC fraud investigation of Atlantas' President, Edmund Hysni has been caught providing the NFA with the false evidence. The NFA inquired Hysni about the money that Atlantas transferred to an unregistered Associated Person. As the NFA had suspicions that Hysni was the Associated Person. In response to this investigation, Hysni appeared to have provided false comments.

When settling the charges, the CFTC announced that Edmund Hysni is liable for Atlantas’ violations, as he is the owner and President of the firm. In return, Atlantas is also liable for Hysni’s actions and violations, considering that he falls under the employment legislation of the firm. The CFTC notified the victims of this scam that their losses may not be compensated as the accused may not have enough funds. However, the regulator will keep on fighting for the customer's rights to ensure that the offenders are liable for their actions.

See also: Deadly attack in Nice: #PortesOuvertesNice (Updated)

Think we missed something? Let us know in the comments section below.

Leave a Reply

Your email address will not be published. Required fields are marked *