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. 

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