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CFTC catches another Ponzi FX scam, worth over $543,000

Ponzi Scheme

CFTC catches another Ponzi FX scam, worth over $543,000

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He was able to persuade these investors by claiming his companies had historically made large profits, between 8 to 25% per month.

The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Eshaq M. Nawabi and his companies Nawabi Enterprise and Hyperion Consulting Inc. for fraud and misappropriation related to an off-exchange Forex trading scheme.

The defendants have allegedly solicited funds totaling at least $543,000 from at least seven investors as part of the FX scam, according to the financial watchdog that oversees the foreign exchange space in the United States.

Since October 2019, Eshaq M. Nawabi solicited and pooled hundreds of thousands of dollars from at least seven pool participants for the purported purpose of trading forex.

He was able to persuade these investors by claiming his companies had historically made large profits, between 8 to 25% per month, for themselves and pool participants from trading forex. In addition to such high-profit rates, the FX scheme said investors would be exposed to minimal risk and could withdraw their funds at any time.

Instead of trading pool participant funds as promised, the defendants misappropriated their money for Nawabi’s own personal benefit and paid other pool participants

In a classic Ponzi-like scheme, funds were misappropriated for Nawabi’s own personal benefit and to pay pool participants trading returns that did not exist as defendants created and issued false…

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