CFTC Sues Cash FX Group Over Alleged $950 Million Scheme

The Commodity Futures Trading Commission filed a civil lawsuit against Cash FX Group and associated people in federal court in Florida, alleging they raised more than $950 million through a purported foreign-exchange investment operation. The complaint, filed September 25 in the U.S. District Court for the Middle District of Florida, says participants lost at least $406 million. The allegations have not been determined by a court. The case names Cash FX Group, its chief executive Huascar Jose Lopez Castillo, The Conversion Pros and its chief executive Ronald Pope, and promoter Justin Halladay. The CFTC alleges the defendants solicited money for a pool that was presented as trading retail foreign-currency contracts. According to the complaint, investors were told that expert traders, proprietary algorithms and artificial intelligence would manage their funds and generate returns of up to 15% a week. The agency alleges that actual foreign-exchange trading was minimal and that money from newer participants was used to pay purported profits to earlier participants.