The Commodity Futures Trading Commission has received a motion to enter default judgment in a fraud case related to binary options and retail foreign currency (forex) trading.
Specifically, the motion to enter default judgment is directed against California-based John D. Black and its affiliates Financial Tree; Financial Solutions Group; and New Money Advisors, LLC; and his associates Christopher Mancuso and Joseph Tufo; as well as Colorado-based John P. Glenn and his law firm, The Law Firm of John Glenn, PC
Order Finds They Liable for Solicitation Fraud in Relation to Binary Options and Foreign Exchange Transactions, Fraud by Commodity Pool Operators and Associated Persons, Multiple Registration Violations CFTC and non-compliance with CPO regulations.
The case was filed in the U.S. District Court for the Eastern District of California.
The order requires the law firms Black, Financial Tree, Financial Solution, New Money, Mancuso, Glenn and Glenn to pay jointly and severally nearly $10.5 million in restitution; and Tufo to pay more than $4.5 million of this restitution jointly and severally with the other defendants.
Additional monetary civil penalties of approximately $5.4 million are assessed against Black, Financial Tree, Financial Solution and New Money; $12.1 million on Mancuso; $680,000 on Tufo; and $850,000 for Glenn and his law firm. In addition, defendants are permanently prohibited from engaging in conduct that violates the Commodities Exchange Act (CEA), from registering with the CFTC, and from trading on all CFTC-regulated markets. In addition, it compels seven reparations defendants to return more than $2.6 million they received from the regime to which they have no legitimate claim.
U.S. District Judge Troy L. Nunley found that between approximately June 15, 2015 and June 15, 2020, the defendants fraudulently solicited members of the public to contribute funds to fraudulent binary options and pools forex commodities; misappropriated millions of dollars of these funds for personal gain; made Ponzi payments to existing pool participants with funds from new pool participants; and made false claims to explain their inability to return the funds and realize the promised benefits.