CFTC requests entry of default against fraudulent FX scheme Oasis International Group

Maria Nikolova

OIG has failed to answer or otherwise defend itself in the case brought by the CFTC, so the regulator seeks a clerk’s entry of default against the defendant.

The United States Commodity Futures Trading Commission (CFTC) keeps up its fight against illicit Forex entities. In one of its actions against such fraudulent schemes, as FinanceFeeds has reported, the US regulator is targeting Oasis International Group, Limited (OIG), Oasis Management, LLC (OM), Satellite Holdings Company (Satellite), Michael J. DaCorta (DaCorta), Joseph S. Anile, II (Anile), Raymond P. Montie, III (Montie), Francisco “Frank” L. Duran (Duran), and John J. Haas (Haas). The US regulator alleges that the defendants solicited approximately $75 million from investors.

On June 3, 2019, the CFTC filed a motion with the Florida Middle District Court, requesting a clerk’s entry of default against Oasis International Group, Ltd. (OIG).

In support of this request, the CFTC states that, on or about May 6, 2019, pursuant to the Hague Convention, the CFTC effected personal service of the summons and Complaint on Defendant OIG’s registered agent in the Cayman Islands. OIG’s answer or other responsive pleading to the CFTC’s Complaint was due on or before May 28, 2019. As of June 3, 2019, defendant OIG has failed to answer or otherwise defend as instructed by the Summons and as provided by the Federal Rules of Civil Procedure. That is why, the CFTC requests a clerk’s entry of default against OIG.

On April 15, 2019, the CFTC filed its Complaint for Injunctive Relief, Civil Monetary Penalties, Restitution, Disgorgement and Other Equitable Relief alleging violations of the Commodity Exchange Act and the Commission Regulations.

In its Complaint, the CFTC alleged that the defendants were engaged in a fraudulent scheme to solicit and misappropriate money from over 700 U.S. residents for pooled investments in retail FX contracts. The CFTC also alleged that between mid-April 2014 and mid-April 2019, the defendants fraudulently solicited hundreds of members of the public to invest approximately $75 million in two commodity pools that purportedly would trade in Forex. Rather than use pool participants’ funds for forex trading as promised, however, the defendants traded only a small portion of pool funds in forex – which trading incurred losses – and instead misappropriated the majority of pool participants’ funds and issued false account statements to pool participants to conceal their trading losses and misappropriation. 

Read this next

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets enables Shopify merchants to accept crypto payments has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance