CFTC Brings Fraud Charges Against FX Trader Kelvin Ramirez

The US Commodity Futures Trading Commission (CFTC) today charged a‎ Texas-based 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 trader in a case involving the ‎operation of a fraudulent investment scheme, according to a CFTC ‎statement.‎

Kelvin O. Ramirez was ‎accused of taking money from customers who thought they were investing in foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term markets. ‎Customers were lulled into the false belief that they were trading currencies through accounts managed by Ramirez, or by subscribing to his education courses or signals service.

The defendant sold the ‘double your money’ software for as little as $250 per month to receive the basic trading signals and as much as $25,000 to receive the trading signals and other personalized trading advice.

In connection with the promotion of the software, Ramirez made a series of materially false claims through various means, primarily through social media, including Instagram, WhatsApp, and similar channels.

Multiple fraud counts

Ramirez used several names to hide his identity, according to the complaint that accuses the ‎defendants of fraud, misappropriation, registration ‎violations, and issuing false statements.‎

The US derivatives regulator alleged in its complaint the money sent to Ramirez was not used to ‎purchase or trade FX on his clients’ behalf. Prosecutors said that instead ‎of buying the contracts ordered by his customers, he ‎spent the money on company expenses, investment activities ‎and for his own personal use and benefit. ‎

As a result of the actions and misappropriation, the ‎commission seeks full restitution to ‎defrauded ‎participants, disgorgement of any ill-gotten gains, a civil ‎monetary ‎penalty, permanent registration and trading ‎bans, and a permanent injunction ‎against violations of ‎federal commodities laws, as charged.‎

According to James McDonald, the CFTC’s Director of Enforcement, “This case shows the CFTC’s continued commitment to rooting out fraud in our markets, whether it flows through traditional avenues or new ones, like the social-media based scheme alleged here. As social media becomes more prevalent, we caution customers to perform appropriate due diligence regarding any investment solicitations they receive over those platforms.”