An Unregistered Pool Operator Ordered To Pay $11 Million For FX Pool Trading Fraud
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A former Florida resident has been accused of FX pool fraud. Darren Robinson, along with his company QYUHI headquartered in Wyoming, is obligated to pay over $5.9 million in restitution and an additional $5.9 million in civil penalties.
The charges were levied because the individual and his firm were involved in a deceptive foreign exchange scheme. The recent ruling was issued following actions taken by the Commodity Futures Trading Commission (CFTC) against the perpetrators.
Robinson Is Accused Of Wire Fraud And Money Smuggling
As stated in the official declaration, Robinson managed The QYU Holdings (QYUHI) as a pooled commodity investment administrator from January 1, 2017, to September 28, 2023. It was stated that he supervised the corporation without fulfilling the requirement of registering the firm with the CFTC. Additionally, Robinson was also not certified by the regulatory body.
The CFTC highlighted in its announcement last week that QYUHI did not adhere to the CPO regulations. The agency added that the court order has closed the case brought by the CFTC against QYUHI and Robinson
Robinson is also faced with 11 accusations of wire fraud and one accusation of money laundering and is presently a fugitive.
CFTC emphasized that QYUHI and Robinson were involved in a multimillion-dollar illegal scheme. The agency also added that the accused received around $7.2 million from 38 individuals to engage in a commodity pool managed by the firm.
The scheme engaged in trading commodity interests, like forex pairs using leverage, financing, or margin with individuals who were not qualified contract participants. The funds were diverted and directly placed into QYUHI’s corporate bank account, under Robinson’s authority.
The CFTC highlighted that Robinson utilized the cash from the pool participants for himself. He spent the funds on credit card payments, real estate purchases, luxury vehicle acquisitions, airfare, luxury cruises, and various other everyday living expenses.
The CFTC Wants To Ensure The Safety Of The US Derivatives Markets
The CFTC is a governmental agency established in 1974, tasked with overseeing the U.S. derivatives markets. These markets include swaps, futures, and specific types of options. The objective of the CFTC is to foster the vibrancy, resilience, and integrity of the United States derivatives markets via robust regulation.
The CFTC has been very active in the protection of investors in the financial market. However, the regulator has warned that directives requiring the return of funds to victims might not lead to the recouping of any lost funds due to the potential insufficiency of funds held by the wrongdoers.
The agency will persistently advocate for the safeguarding of customers and for ensuring that the perpetrators are held responsible.
