Digital currency Scammers Fined $400,000 for Impersonating CFTC

2 min

The United States Commodities Futures Trading Commission (CFTC) has gotten a default judgment from a Texas government court deciding for the regulator’s case of evidence against Diamonds Trading Investment House. The organization is blamed for working a fraudulent foreign trade platform and impersonating the CFTC.

The ruling was made after Diamonds Trading Investment House failing to react to the charges, and all things considered little is known about area and personality of the respondents. The court has requested the defendants to pay almost $400,000 in consolidated common punishments and compensation. The judgment was documented by Judge Reed C. O’Connor of the U.S. District Court for the Northern District of Texas.

Defendants Use Facebook and Email to Promote Fraudulent Investment Scheme

The CFTC’s protest was initially recorded against respondents John Doe 1 otherwise called (a.k.a) Morgan Hunt working together as (d.n.a.) Diamonds Trading Investment House, and John Doe 2 a.k.a. Kim Hecroft d.n.a. First Options Trading on Sep. 28, 2018. Hecroft is purportedly of Baltimore, Maryland, while Hunt is purportedly of Arlington, Texas. The regulator attempted to serve the grievance through email, under the watchful eye of documenting a court request with Texas court in the wake of getting no reaction from the defendants.

The defendants advanced fake speculation plans including cryptographic forms of money, utilized outside cash contracts, twofold alternatives, and options . Chase and Hecroft dishonestly guaranteed “a uninvolved investment return of 40-60% following a 30 day exchanging cycle,” and were fruitful in defrauding at least two individuals – one of whom got a disability pension . The CFTC expressed:

The Defendants utilized Facebook and email to deceitfully request Bitcoin from individuals from general society, dishonestly asserted that they would utilize client assets to put resources into exchanging to support the clients, distorted their experience and reputation as brokers and portfolio mangers , erroneously told clients that they couldn’t pull back their implied venture benefits without first paying a tax expense to the CFTC, and misused client funds .

Defendants Fined $180,000 Plus Restitution

Hunt and Hecroft were likewise found to have imitated a CFTC examiner, manufactured reports apparently composed by the CFTC’s General Counsel, and fake record statements to their victims. Hecroft likewise created an imagine “Certified CryptoCurrency Expert” license that he indicated was issued by the Blockchain Council.

James McDonald, CFTC Director of Enforcement, expressed: “As the CFTC has repeatedly warned, retail customers should exercise caution before buying or trading cryptocurrencies on unfamiliar Internet websites or social media. The CFTC reiterates that it does not collect taxes or fees, and will continue to educate the investing public and aggressively pursue misconduct in this arena.”

The court order requires both Hunt and Hecroft to pay compensation and a $180,000 civil monetary penalty each and imposes permanent enrollment and trading bans on the defendants.

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