The CFTC also filed civil enforcement action against Erik J. Hass and his company Simply Gains Inc. on charges of fraud, misappropriation and failing to register with the CFTC.
The defendants solicited at least $2.1 million from at least 21 individuals to fund their forex commodity pool operation. Despite assurances that they could not lose more than 20% of their funds, the defendants lost more than $1 million trading forex and misappropriated at least $415,000 more to spend on Hass’s mortgage, credit card debt and a Caribbean cruise.
The CFTC also alleges that the defendants solicited pool participants with deception about Hass’s experience, expertise and track record while promising future profitability. The complaint further claims that they concealed their misappropriation and unprofitable forex trading by sending pool participants false account statements to show profits.
CFTC is seeking restitution to defrauded individuals, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans and a permanent injunction against future violations of the Commodity Exchange Act.
On 9 June 2020, the United States Attorney for the District of Oregon indicted Hass on five counts of wire fraud, two counts of mail fraud and one count of money laundering.
Read More:
- CFTC fines Gain Capital UK nearly $500K for registration and supervision violations
- CFTC files a $1.5 Million forex fraud scheme charges against GNTFX оwner
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