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CFTC Orders Three People to Pay $1.75 Million in Crypto Scheme Case

Photograph: FM

The US Commodity Futures Buying and selling Fee (CFTC) introduced on Tuesday that it has entered a consent order in opposition to three people associated to a cryptocurrency scheme. In accordance with the press launch, the authority issued an order in opposition to Mayco Alexis Maldonado Garcia and a separate order in opposition to Cesar Castaneda and Joel Castaneda García.

The authorized motion – filed within the Southern District of Texas – sought to impose a everlasting ban and injunction on the defendants from registering with the CFTC and buying and selling commodity pursuits. The case dates again to August 2016, whose scheme, dubbed International Buying and selling Membership (GTC), ran till October 2017 by the defendants and others. The CFTC detailed that the agency employed so-called “grasp merchants” who claimed to have years of expertise buying and selling cryptos.

“The defendants additional falsely represented that buyer earnings would enhance primarily based on the quantity of their deposit and that GTC would award bonuses to clients who referred others to the GTC enterprise. Moreover, to hide their fraud, the defendants precipitated deceptive buying and selling statements to be posted on-line,” the CFTC mentioned. Furthermore, the authority commented that not less than 27 people deposited nearly $989,000 with a number of scheme representatives.

Penalties to Be Paid

“The orders additionally require the defendants to pay $989,550 in restitution, Mayco Alexis Maldonado Garcia to pay a civil financial penalty of $400,000, and Cesar Castaneda and Joel Castaneda Garcia to every pay a civil financial penalty of $180,000,” the grievance added. Maura Viehmeyer, Erica Bodin, James A. Garcia, Aimée Latimer-Zayets, and Rick Glaser have been answerable for the case’s investigation.

In July, the CFTC filed a civil enforcement motion in opposition to three people allegedly concerned in a multimillionaire commodities fraud scheme. The monetary authority filed fees earlier than the US District Court docket for the Southern District of New York in opposition to Robert Jeffrey Johnson, Kathleen Hook, Ross Baldwin, Treasured Commodities, Inc. (PCI), Nationwide Coin Dealer, Inc. (NCB), and NCB Wholesale Co. (NCBWC), and they’re all from Florida.

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