CFTC Charges Cash FX Group in $950 Million Ponzi Scheme

The U.S. Commodity Futures Trading Commission (CFTC) has charged Cash FX Group S.A., its CEO Huascar Jose Lopez Castillo, The Conversion Pros, Inc., its CEO Ronald Pope, and Justin Halladay with operating a multi-level marketing Ponzi scheme. The defendants allegedly raised over $950 million under the guise of forex commodity pool trading, promising up to 15% weekly returns. The CFTC reports that participants suffered at least $406 million in losses, as the defendants primarily used new investor capital to pay fake returns and personal expenses. The regulator is seeking restitution, disgorgement, civil monetary penalties, and permanent trading and registration bans.