CFTC continues settlement talks with head of Global FX Club, drug testing added to his bail - FinanceFeeds

CFTC continues settlement talks with head of Global FX Club, drug testing added to his bail

Michael Wright, head of Wright Time Capital Group, doing business as Global FX Club, has pled guilty to commodities fraud and his sentencing is scheduled for January 2018.

The United States Commodity Futures Trading Commission (CFTC) continues its settlement talks with Michael Wright, head of Wright Time Capital Group LLC, or Global FX Club. Today, the regulator provided an update to the judge assigned to the civil case against Mr Wright.

From at least January 2011 to June 2017, Mr Wright, while acting as a principal of Wright Time Capital Group LLC, aka Global FX Club, falsely represented to investors that their money was going to be used to trade in off-exchange foreign currency transactions, and falsely represented to investors the trading performance of his company. In addition, he is accused of having misappropriated a large portion of investor funds for his personal use and of having utilized investor funds in a Ponzi-like manner to make payments to other investors.

The CFTC charged Mr Wright and his companies with fraud, misappropriation, and issuing false account statements in connection with a pooled investment in Forex trading. The CFTC Complaint stated that from approximately August 2010 through the present, the defendants engaged in a fraudulent scheme to solicit more than $400,000 from at least 10 members of the public, promising to use pool participant funds for FX trading.

On August 30, 2017, the Court stayed the civil case brought by the CFTC in light of the pendency of a related criminal matter. On October 13, 2017, Mr. Wright pled guilty in the criminal matter to Count One of the Indictment against him (commodities fraud) pursuant to a written plea agreement with the government. Mr. Wright was continued on bail and sentencing was scheduled for January 25, 2018.

On December 4, 2017, Judge Paul A. Engelmayer ordered that Mr Wright’s bail be modified to include drug testing and treatment.

With regard to the civil case, neither Mr Wright nor Wright Time Capital Group LLC have obtained civil counsel. The CFTC and Mr Wright continue the settlement discussions.

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