CFTC Takes Action Against Technical Trading Team, LLC For $5 Million Forex Scheme

Washington, D.C. – The Commodity Futures Trading Commission (CFTC) has launched legal action against Technical Trading Team, LLC (TTT) and its top officials. This development demonstrates the CFTC's commitment to maintaining market integrity and protecting investors' interests.

The Charges

TTT, together with its CEO Edwin Carrion and COO Jason Rodriguez, has been accused of collecting payments in excess of $5 million fraudulently. The charges relate to a foreign currency (forex) commodity pool scheme, with accusations pointing to several fraudulent practices:

1. Misleading retail forex transactions.

2. Fraud as a commodity pool operator (CPO) and associated persons (AP) of a CPO.

3. Failing to register in required capacities with the CFTC.

Furthermore, TTT, Carrion, and Rodriguez allegedly gave misleading information about their investment track record and the safety of investing with them. Despite suffering massive losses amounting to over $3 million in forex trading, the defendants reassured investors using claims of advanced artificial intelligence (AI)--based trading strategies that would recoup the losses.

In light of these charges, the CFTC is seeking monetary penalties, full compensation for the deceived investors, relinquishment of unlawfully obtained profits, bans on trading and registration, and an injunction against any further violations of regulations.

Background of the Case

TTT, led by its CEO and COO, solicited investments for a forex trading scheme that began in January 2020. These solicitations falsely promised:

• Annual returns ranging from 18% to 24%.

• Full repayment of principal investments at the end of a year.

• Security measures like maintaining a reserve fund equivalent to the investors' contributions.

• Minimal trading risks.

• No overnight trades.

The CFTC complaint reveals that these claims were deceptive, as the defendants did not adhere to their promises. Of the approximately $5 million solicited from 27 investors, a whopping $3.13 million was lost due to high-risk forex trading strategies. Worse still, funds were misused for personal gains, and fresh investor money was utilized to pay older investors. To cover up these losses, the TTT management alleged the creation of an AI-driven “bot” to manage trades.

The case also highlights TTT's operational irregularities. The firm functioned as a CPO without the necessary CFTC registration. Similarly, both Carrion and Rodriguez acted in capacities that required CFTC registration but failed to do so. The duo even gave misleading information to a forex dealer about TTTs operational scope and source of funds.

Concluding their statement, the CFTC cautioned that getting back lost money might be challenging due to the potential lack of funds or assets with the defendants. The commission remains committed to protecting customers and penalizing fraudulent activities.

The Belize Financial Services Commission has also been acknowledged by the CFTC for their assistance in this matter.

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