The U.S. Commodity Futures Trading Commission (CFTC) recently filed suit in New York federal court accusing a California husband and wife of running a Ponzi scheme. The couple’s company, Profit Management, received nearly $1.2 million from investors with the understanding that their money would be used to trade in futures through a commodities pool. The pool never made such trades.
The couple, Hasan Sarwar and Rachida Elfrimi of Rancho Cucamonga, allegedly defrauded more than 40 investors by falsely claiming that Profit Management’s commodities pool made a daily return of 5 to 7 percent. But the pool did not conduct any futures trades and earned no profits.
According to the CFTC’s allegations, investors’ money was placed in bank accounts belonging to Sarwar and Elfrimi. Sarwar used a little less than half of investors’ funds for trading in his own personal account — where all but about $5,800 was eaten up by bad trades and account fees — and for paying the couple’s business and personal expenses.
The rest went to Ponzi-style payments to early investors. To keep the scheme going, investors were sent false account statements showing how much money was being held in their names.
CTFC Seeks Permanent Injunction
The CFTC alleges that Profit Management and Sarwar and Elfrimi’s conduct violated the Commodity Exchange Act and other CFTC regulations. The agency seeks restitution, disgorgement, and civil monetary penalties, in addition to trading and registration bans and a permanent injunction against future violations.
Did You Loose Money to Profit Management?
If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.
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