The Commodity Futures Trading Commission (CFTC) has filed a civil lawsuit in the United States District Court for the Eastern District of New York against Technical Trading Team LLC (TTT), CEO Edwin Carrion, and COO and head trader Jason Rodriguez. woke up.
The complaint alleges that they engaged in a scheme to defraud at least 27 individual investors of nearly $5 million. However, they incurred huge losses in leveraged foreign exchange transactions, diverted the funds for personal use, and used the funds raised to repay early investors.
According to the statement, Edwin Carrion and Jason Rodriguez, along with Technical Trading Team LLC (TTT), fraudulently solicited individuals who were not qualified to trade on foreign exchange margin. Additionally, they are charged with acting as a commodity trading advisor and its associates without obtaining the required registration. Additionally, Defendants failed to provide the required disclosures regarding customer testimonials on Denali’s website, nor did they provide hypothetical disclaimers as required by CFTC regulations.
To create the illusion of stability, the defendants promised victims high annual interest rates and return of their principal investments. To lure investors, they exaggerated their forex trading track record, misrepresented their risk management practices, and claimed that using AI-based “bots” for trading would recoup losses and repay loans. . The CFTC said these representations are false or misleading.
“As alleged, defendants made false and misleading statements and promises about the safety and profitability of being a pool participant in the TTT Commodity Pool,” Enforcement Director Ian McGinley said. “As a result of depositing funds with TTT based on these false promises, pool participants lost millions of dollars. This demonstrates once again how the CFTC will hold fraudsters in the market accountable for their fraudulent behavior, whether they utilize emerging technology or not.”
In addition to the misrepresentations, the Commission alleges that the two individuals personally claimed to have several years of experience in actual trading and futures investing, when in fact they had no actual experience. There is. Additionally, the CFTC stated that the defendants did not know whether the participants who contributed funds to the pool were eligible.
The CFTC is seeking civil monetary penalties, restitution to defrauded pool participants, disgorgement of ill-gotten gains, a permanent registration and trading ban, and a permanent injunction against future violations of the Commodity Exchange Act and CFTC regulations.
