CFTC Files against Jason Amada & Brand
The US Commodity Futures Trading Commission has filed and settled enforcement actions against operators of Amada brand on Friday. The revealed FX scam was about marketing passive returns through their bogus foreign currency trading venture.
CFTC has fined Jason Amada and his company Amada Capital Management LLC, both of New York, with penalties totaling $596,700.
Former Wall Street stockbroker held himself out to the public as an experienced FX trader. He also presented himself as the operator of multiple investment funds.
The penalties are the latest in a long-running crackdown on online trading providers targeting retail investors. As a result, many brokers and their principals have paid millions in fines.
From October 2013 proceeding through December 2018, the defendants fraudulently solicited retail investors to open forex trading accounts. This was by misrepresentation of their experiences and profitability, among other things.
Jason has led the Forex Ponzi scheme and had made several violations. In fact, these included fraudulent solicitations, false statements, and fraudulent misappropriation.
He has created numerous fake account statements, using them as tools to mislead investors about the status of their investments.
Jason Amada Pleaded Guilty
In a separate action brought by the New York State Office of the Attorney General, Jason pleaded guilty. He was guilty of felony charges of grand larceny and operating a scheme to defraud.
He was sentenced in a New York court in 2019 to three to six years in prison. This was after signing confessions of judgment in favor of his eight victims.
A year before, he was arrested on charges of fraudulently soliciting a client to invest nearly $300,000. And then losing 99% of her principal investment in less than two months of aggressive trading.
Following his arrest, more victims reported that they had invested and lost money with him under similar circumstances.
In reality, Amada spent all the sent money on his own expenses. The offender was also paying some of the money to several investors so that his scheme would stay unrevealed.
The CFTC said the recent action should set a precedent for enterprises that fail to comply with the commission’s requirements. Furthermore, the case highlights concerns about the risks posed by managed trading schemes.
The regulator says it has seen an increase in websites that fraudulently promote such products and its related advisory services.
