The U.S. CFTC has filed a civil enforcement action against NOLA FX Capital, Meteor, LLC, and their founder, Michael B. DePetrillo, accusing them of a $7.6 million forex fraud and failing to register. Allegations include operating a Ponzi-like scheme, misappropriating funds, and issuing false account statements. DePetrillo also faces separate criminal charges filed by the U.S. Attorney’s Office in Louisiana.
Key Points:
- Defendants: NOLA FX Capital Management, LLC, Meteor, LLC, and cofounder Michael B. DePetrillo.
- Alleged Scheme: Fraudulently solicited $7.6 million from 40 investors, misappropriating funds and misleading participants with false profit statements.
- Registration Violations: Operated as unregistered commodity pool operators, violating CFTC regulations.
- Legal Action: CFTC seeks restitution, disgorgement, monetary penalties, trading and registration bans, and a permanent injunction.
- Criminal Charges: DePetrillo also faces separate criminal charges filed by the U.S. Attorney’s Office in Louisiana.
Short Narrative:
The U.S. CFTC has launched a civil enforcement case against NOLA FX Capital, Meteor, LLC, and their founder Michael B. DePetrillo, accusing them of running an unregistered multi-million dollar forex Ponzi scheme.
Starting in 2017, DePetrillo and his companies allegedly pooled investor funds with promises of forex trading profits under NOLA FX Fund, LLC. However, the CFTC claims the funds were diverted for personal expenses, Ponzi-style payments, and unrelated personal trading. Furthermore, the defendants operated without required CFTC registrations, putting investors at significant risk. This case is compounded by a parallel criminal filing from the U.S. Attorney’s Office, underscoring the serious nature of the allegations.
Actionable Insight:
This case highlights the importance of verifying registration and licensing with regulators before investing in commodity pools or forex trading ventures. Investors should always confirm whether fund operators are registered with the CFTC to avoid falling victim to unregistered schemes.
Call for Information:
Have insights or experiences with unregistered forex trading schemes? Connect with FinTelegram as we shed light on the tactics of unregulated operators and work to protect investors from financial fraud.
