The United States Commodity Futures Trading Commission (CFTC) released a statement this week that is has charged Larry Ramos Mendoza and Joseph Carvajales, both Miami residents, with fraud and misappropriation of funds. The culprits’ scheme called The W Trade Group LLC is reported to have embezzled more than $19 million in FX, options, and futures.
The W Trade Group LLC sent investors false accounts of trading activity and profit gains that were in fact forged statements, hatched in order to motivate clients to continue investing. The CFTC commented that the criminals also solicited customers by lying to them about false return on their investments, as well as falsely representing risks about the investments.
Larry Ramos Mendoza has been pointed as the head of W Trade Group LLC by the agency, and is has been revealed that the scheme has had quite the long run- from June 2013 to June of 2020. At least 220 customers were defrauded, and around $19 million were embezzled.
The CFTC acted by filing a civil enforcement action against both parties this Monday in the District Court for the Southern District of Florida. The agency is seeking to apply trading and registration bans, injunction against potential future violations, the restitution of funds for the victims, and disgorgement of all gains.