The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against a CTA claiming to have grown 2,675% in two years with a 99.55% trade win ratio.
Jamal Vance and All City Investments (All City) are the defendants in the action, they are charged with solicitation fraud in connection with an FX scheme and with failure to register as Commodity Trading Advisors (CTAs).
According to the CFTC’s complaint, the defendants solicited customers on their website to open and deposit funds into their own accounts with a brokerage services firm that provides an online forex trading platform, and to sign a limited power of attorney form, which designated All City as that customer’s agent and attorney-in-fact for the purpose of buying and selling margined FX transactions for the customer’s account.
The complaint alleges that in order to attract customers, the defendants included a graph on their website with an accompanying table and text that falsely and misleadingly showed “2,675.10% growth” from December 2013 through September 2015.
The CFTC also claims that it falsely and/or misleadingly claimed that All City performed 444 trades during that timeframe broken down as follows: “Profit Trades: 442 (99.55%)” and “Loss Trades: 2 (0.45%).”
Allegedly, the information on the trading graph, table, and text (the “Track Record”) was all false and/or misleading.
In addition to this, the CFTC says that both Vance and All City acted as a CTA without registering as such with the CFTC as required. Vance’s last known address is in Orlando, Florida, and All City has a principal place of business in Dallas, Texas.
In its continuing litigation against the defendants, the CFTC seeks disgorgement of ill-gotten gains, full restitution to defrauded customers, civil monetary penalties, trading and registration bans, and a permanent injunction prohibiting the defendants from committing future violations of the federal commodities laws, as charged.