CFTC Targets Corona-Related FX and Binary Options Scam

A Georgian resident, who was ordered by a state regulator to ‘cease and desist’ earlier this year, is in hot water with the CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term on charges that he defrauded people by soliciting investments in a phony FX and binary options trading scheme.

The Commodity Futures Trading Commission (CFTC) said Kenzley Ramos pooled money from investors with the promise that it would be invested in currency markets and 'profit off the coronavirus with forex'.” He set up and ran his fraudulent trading business from June 2015 up until now.

The watchdog said Ramos solicited investments ranging from $200 to $2,000 from its scam victims to trade Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and binary options by promising spectacular returns and personal guarantees.

He touted himself as an accomplished trader that uses a proven strategy that ensures in 'no possible way investors can lose money', while not disclosing the long list of inherent risks in forex and binary options trading.

Covid-19 Created a Perfect Storm for Investment Fraudsters

Ramos, who used two aliases: Anthony David 'Tony' Mckinney and Anthony Green, to mislead investors, guaranteed high-double-digit returns of up to 300 percent per week. Moreover, he stipulated that a 15% fee would be deducted from the balance whenever investors withdraw their funds.

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However, instead of investing their money, he used investors’ funds for his own personal expenses.

Ramos preyed on concerns surrounding the pandemic, telling his victims that the “stock market is crumbling.” This is according to his most recent Craigslist ad claims, which targeted residents in Austin, Dallas, Houston, and San Antonio.

In a parallel criminal action, a federal grand jury indicted Ramos on one count of commodities fraud, and he already made his initial appearance in federal court on Friday afternoon.

The US regulators have recently warned Americans about criminals trying to steal their funds using several scams tied to the coronavirus pandemic. Moreover, they warned of the substantial potential for fraud at this time, saying that crooks often try to capitalize on high-profile news events to lure investors into financial cons.

Furthermore, the CFTC identified fraudsters urging people to invest in new stocks related to the disease as among the most prevalent scams attempting to take advantage of the coronavirus outbreak.