The Commodities Futures Buying and selling Fee (CFTC) has dragged Dominick Carducci and VOS Capital Management to court docket in a foreign exchange fraud case. The defendants have been occupied with a.
A foreign exchange funding rip-off
In step with the, Carducci labored as an agent and officer of VOS Capital and ended up persuading a minimum of thirty traders in including their finances to a pooled foreign exchange funding product. They solicited about $1.1 million from the sufferers. The CFTC has introduced the case in opposition to the corporate and Carducci with New York Southern District Courtroom.
In step with the criticism, the defendants solicited investments for a fraudulent foreign exchange scheme between August 2019 and September 2019. The defendants approved finances from traders and misappropriated them in the title of investments in an off-exchange foreign exchange contract. The fraudulent contracts have been both margined or leveraged.
Carducci allegedly fooled traders, personally and in the capability of VOS Capital agent. He knowingly made omissions and subject matter representations of knowledge in his non-public conversations in addition to written communications with the sufferer. Doing this, he made tall and fraudulent claims about foreign currency trading and returns to the traders and won a minimum of $1.1 million.
Standard foreign currency trading rip-off
The rip-off by VOS Capital Management proceeded in an ordinary manner. The perpetrators of the crime advised the sufferers that that they had made nice income by making an investment in the pool and buying and selling. They stated that the foreign currency trading accounts have been secure with a registered broker that was once managing $12 million value of finances.
The defendants advised traders that they might be managing their cash and buying and selling on behalf of the members of the foreign exchange pool. By doing this, traders may just get returns as top as 18% monthly. They have been advised that there could be no losses and the members of the foreign exchange pool may just withdraw their finances on request.
This can be a commonplace methodology used by scammers who inform traders about strangely top returns and go with the flow “too just right to be true” schemes. The CFTC alleges that VOS Capital didn’t business the finances in foreign exchange swimming pools. The cash deposited by the sufferers was once used for private bills of Carducci. He lived a lavish way of life, purchased luxurious vehicles and paid for his global travels the usage of that cash. The defendants even used a few of the finances in an ordinary Ponzi scheme fashion- they used it to repay some traders to persuade them of top returns.