CFTC Slaps Unregistered Firm Welther Oaks and Its Owner

The US Commodity Futures Trading Commission (CFTC) announced that it has filed a civil enforcement action against Ali Bazzi and his company Welther Oaks, LLC, for being involved in a forex-related fraud.

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According to the announcement, Bazzi solicited fraudulently at least $470,000 in March 2018 from at least 25 pool participants to trade forex allegedly. The defendants falsely represented that they had made large profits trading forex and that pool participants would realize guaranteed profits as high as 15% per month on their funds without losses, and could withdraw their funds at any time.

However, Bazzi and Welther Oaks used only a small fraction of the funds they collected to trade forex and concealed their fraud by issuing false account statements to the pool participants that purported to show trading profits.

In addition, the complaint alleges that defendants misappropriated at least $387,000 of participants’ funds to spend on automobiles, jewelry, retail purchases, meals and entertainment and travel for Bazzi.

The CFTC is seeking disgorgement of ill-gotten gains, civil monetary penalties, restitution, permanent registration and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA), and CFTC regulations.

As Fazzaco reported earlier, the CFTC has requested for entry of default against the entities and individuals involved in a $14.5 million binary options and retail Forex Ponzi scheme​.