The US Commodity Futures Trading Commission (CFTC) recently filed a complaint against four individuals and their unincorporated entity, Fundsz, for engaging in a fraudulent project that exploited precious metals and digital assets. The defendants, Rene Larralde, Brian Early, Alisha Ann Kingrey, and Juan Pablo Valcarce, allegedly deceived over 14,000 customers by promising significant returns using a proprietary algorithm and a “secret sauce” for trading.
The fraudulent activities of Fundsz and its founders came to light when the CFTC initiated legal action against them. The complaint, filed in the US District Court for the Middle District of Florida, accused the defendants of engaging in “fraudulent solicitation from clients to purportedly trade in cryptocurrencies and precious metals.” The project had been operational since October 2020 and continued until the recent legal intervention.
Fundsz’s founders sought to entice investors by making unrealistically high claims of performance. They asserted that they had consistently made “on-time and accurate payments” for seven years and promised returns of over 3% per week to potential investors. Furthermore, they propagated the notion that a mere $2,500 investment could yield a staggering $1 million within 48 months, without the need for additional contributions.
To enhance their credibility and gain the trust of potential investors, the founders presented themselves as philanthropists. They stated that a portion of the contributions made to Fundsz were used to support various initiatives, including the preservation and cleaning of oceans, as well as projects related to health, education, and humanitarianism. These charitable endeavors served as a decoy to deflect suspicion and create a positive image for their enterprise.
Misappropriation of Funds
While Fundsz managed to amass a significant customer base, the CFTC revealed that the defendants had never actually traded any funds in cryptocurrencies or precious metals. Instead, they fabricated fictional weekly returns to deceive their clients. Consequently, all gains experienced by customers were illusory, as the earnings were non-existent.
CFTC’s Stance and Words of Caution
The CFTC remains strongly committed to uncovering fraudulent schemes in the cryptocurrency and precious metals markets. Director of Enforcement Ian McGinley warns potential investors to exercise caution and skepticism, emphasizing the enduring relevance of the adage, “if something sounds too good to be true, it probably is.” Despite changing tactics and advancements in technology, fraudsters continue to exploit individuals through various means, such as social media.
The fraudulent project operated by Fundsz and its founders highlights the prevalence of deceptive practices within the financial markets, particularly in the realm of digital assets and precious metals. It serves as a reminder for investors to conduct thorough due diligence and be skeptical of investment opportunities that promise unrealistic returns. By staying vigilant, individuals can protect themselves from falling victim to scams and contribute to the eradication of fraudulent schemes in the cryptocurrency and precious metals industry.
Leave a Reply