April 23, 2019, | AtoZ Markets - The Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in federal court in Florida against Oasis Global FX scam in $75 million fraud scheme.
Oasis Global FX scam case in a brief
According to the US Commodity Futures Trading Commission press release, the agency charged the owners of Oasis International Group, Limited, Oasis Management, LLC, Satellite Holdings Company - Michael J. DaCorta, Joseph S. Anile, II, Raymond P. Montie, III, Francisco L. Duran, and John J. Haas. As per the U.S. commission, the defendants Michael DaCorta, Joseph Anile, Raymond Montie, Francisco Duran, and John Haas from 2011 through 2019 fraudulently solicited and misappropriated money from over 700 U.S. residents for pooled investments.
The US CFTC reported that in a period between mid-April 2014 and the present, the defendants had received approximately $75 million from pool participants for investment in two commodity pools—Oasis Global FX, Limited and Oasis Global FX, SA (collectively, the “Oasis Pools”). According to the press release, the Oasis Global FX scam participants hid their fraud, giving false account statements to the participants in the pool. The prosecutor also mentioned nine relief defendants who allegedly received funds from pool members.
The US court freezes the defendants’ assets
On April 15, 2019, the Honorable Virginia Covington, U.S. District Court Judge for the Middle District of Florida, ordered to freeze the assets of the participants of the Oasis Global FX scam case. In addition, the court permitted CFTC to inspect the relevant records of the accused forex trading firms and it's principals.
In continuing litigation of Oasis Global FX scam case, the US commission seeks disgorgement of ill-gotten gains, civil monetary penalties, restitution, permanent registration, and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act, and CFTC Regulations, the CFTC press release says.
Oasis Global FX scam was using Ponzi scheme
The scammers used to cold-call their potential clients assuring them that Oasis Pools had never had a losing month. The Oasis Global FX scam participants managed to lure potential investors into the so-called Ponzi scheme by promising a minimum 12% guaranteed annual return.
The victims were told their cash would be used to trade in Forex markets and there was no risk of loss with the Oasis Pools. The company also managed to draft performance reports which falsely claimed their pools had achieved gross annual returns for investors of about 21 percent in 2017 and 22 percent in 2018.
Additionally, in order to shore up the fraud, the scammers paid over $28 million to early investors that they claimed represented profits but were, in fact, other investors’ funds
Moreover, the Oasis Global FX workers sent bogus account statements to clients, falsely showing positive returns on their investments, while they actually lost $21 million and misappropriated $47 million.
Oasis Global FX lured around $75 million from investors
According to the US commission’s press release, in total, the defendants received approximately $75 million from pool participants between mid-April 2014 and the present.
The CFTC further explains that they allegedly “deposited only $21 million into Oasis Pools’ forex trading accounts and lost all of those funds trading”.
The Oasis Global FX scam operators lived the good life spending over $18 million for unauthorized personal or business expenses such as real estate purchases in Florida, exotic vacations, sports tickets, pet supplies, loans to family members, and college and study abroad tuition.
The Oasis Global FX scam members misappropriated the majority of pool funds and lost the remainder trading forex. The complaint accuses the defendants of fraud, misappropriation, registration violations and issuing false statements.
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