CFTC Files Petition Against An Alleged Ponzi Scammer

Jyoti  |  Feb 15, 2020

The Commodity Future Trading Commission (CFTC) announced on February 14, 2020, that it has filed a case against Breonna Clark, an alleged Ponzi Scammer for illegally raising half a million dollars via cryptocurrency investment.

While filing the case against Clark in the US District Court, the CFTC stated that Clark and his two firms i.e., Venture Capitals Investment Ltd. and The Life Group raised $534,829 from 72 victims. The CFTC mentioned in its complaint that the firm promised the investors to invest their funds in Bitcoin (BTC), Altcoin and other foreign currency contracts, but it (firm) did not do so, instead, they have used around $400,000 for the personal use.

Several Authorities Helped CFTC In Case

According to the reports, Clark has been charged with fraud by commodity pool operator and commodity trading adviser and failure to register as a commodity trading advisor. The CFTC alleged that Clark misleads its investors with a false account statement. The report further stated that Clark used the funds, he has raised from its investors to pay-off his other investors. 

The complaint by CFTC stated, “At various times during the Relevant Period, several pool participants requested to withdraw funds from their accounts. In some instances, Clark failed to respond at all to a pool participant’s request. In other instances, Clark responded with false excuses.”

It has been reported that authorities like the Financial Supervision Commission of Bulgaria, Financial Markets Authority of New Zealand have helped the CFTC in the case.  

Advisory By CFTC

According to the reports, the CFTC has issued Fraud Advisories to its several customers so that they could identify the scams with the help of it. It also has advised the public that before investing funds in any company, they (public) should verify its registration. And if the customer notices any suspicious activities, then they should report to the Division of Enforcement.

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