The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group S.A., CEO Huascar Jose Lopez Castillo, The Conversion Pros, Inc., CEO Ronald Pope, and Justin Halladay for allegedly operating a multi-level marketing Ponzi scheme. The complaint accuses the defendants of fraudulently soliciting over $950 million from the public under the guise of forex commodity pool trading, resulting in participant losses of at least $406 million.
According to the CFTC, the defendants promised weekly returns of up to 15% by claiming funds were managed by professional traders, proprietary algorithms, and artificial intelligence. In reality, minimal forex trading occurred as the operators misappropriated nearly all participant funds to pay fake returns and enrich themselves. The agency is seeking restitution, disgorgement, civil monetary penalties, trading bans, and permanent injunctions in the U.S. District Court for the Middle District of Florida.
CFTC Sues Cash FX Group Over $950 Million Forex Ponzi Scheme
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