Individuals Behind Global Trading Club Face Heavy Fines

Fazzaco learned that the individuals behind Global Trading Club(GTC) who allegedly fraudulently solicit funds from customers will have to pay heavy penalties.

As seen on the latest filings at the Texas Southern District Court, Judge Sim Lake has signed consent orders against Cesar Castaneda, Joel Castaneda Garcia, and Mayco Alexis Maldonado Garcia.

More specifically, Maldonado will have to pay restitution in the amount of $989,550. He will also have to pay a civil monetary penalty in the amount of $400,000.

The Castaneda Defendants, jointly and severally, agree to pay restitution in the amount of $989,550. Cesar Castaneda and Joel Castaneda Garcia will each pay a civil monetary penalty in the amount of $180,000.

Back to September 2020, the Commodity Futures Trading Commission (CFTC) has filed a complaint against four individuals. The regulator alleges that from at least August 2016 through October 2017, the defendants falsely represented to actual and potential customers that their business, named Global Trading Club (GTC), employed “master traders” who had years of experience trading “crypto currency,” and used “cutting edge trading robots” to trade Bitcoin for customers “24 hours a day, 7 days a week.”

The defendants further falsely represented that customer earnings would increase based on the amount of their deposits. Customers were also falsely promised a bonus for referring others, in the form of a multi-level marketing scheme. To conceal their fraud, the defendants caused misleading trading statements to be posted online.

The complaint further alleges that at least 27 individual customers deposited at least $989,000 with one or more representatives of GTC.