ProbabaFX discovered via a CFTC press release that Patrick Wonsey of Riverview, Florida, is the target of a complaint brought by the CFTC in the Middle District of Florida federal court. According to the lawsuit, Wonsey engaged in fraud and misappropriation in a trading system that included retail foreign exchange (forex) and binary options, among other things, both on and off CFTC-regulated exchanges. At least 50 people reportedly gave Wonsey a total of $3.4 million.
The Commodity Futures Trading Commission (CFTC) is attempting to collect the wrongfully acquired gains, impose civil monetary penalties, order restitution, bar Wonsey from registration and trading, and restrain him from continuing to violate the Commodity Exchange Act (CEA), as alleged.
The complaint claims that Wonsey defrauded at least 50 pool members out of a total of $3.4 million between January 2017 and September 2022 for the purported use of trading retail forex, binary options, commodities, and digital assets. To get pool members to give him money, he made misleading and important statements and omissions regarding his trading history, expected future success, payment frequency, and amount of risk. Wonsey exclusively transacted in binary options and retail FX.
Wonsey did not exchange cash from pool participants as promised; instead, he utilized them for his own gain and to pay other pool participants in a Ponzi-like scheme. Wonsey refused to provide money to pool participants when they begged for it. He either disregarded the demands, made up justifications, or made every effort to postpone payments.
Along with setting up the pool incorrectly, Wonsey failed to register as a commodity pool operator and mixed participant funds with his own.
#ProbabaFX #Regulation #Binary option scam #CFTC