US District Court Fines Denari Capital, LLC and Its Owners Over $4M for FX Fraud and Registration Breaches

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The Commodity Futures Trading Commission (CFTC) announced on Monday that the U.S. District Court for the Northern District of California entered a consent order for permanent injunction, monetary sanctions, and equitable relief against defendants Travis Capson of Kanab, Utah, Arnab Sarkar of El Cerrito, California, and their California company Denari Capital, LLC (Denari), to resolve a CFTC action filed on November 5, 2019.

According to the announcement, the order finds all three defendants liable for engaging in a forex pool fraud and failing to register with the CFTC as a commodity pool operator and associated persons as required. Besides, it finds Capson liable for making misrepresentations regarding Denari’s activities to the National Futures Association (NFA).

Capson and Sarkar are ordered to pay civil monetary penalties of $250,000 and $166,000, respectively. Additionally, they and their company, Denari, are required to pay restitution of $3,663,282 to victims of their scheme. The order also imposes a permanent injunction prohibiting the defendants from further violations of the Commodity Exchange Act and CFTC regulations, as charged, permanent registration bans, and five-year trading bans.