CFTC seeks default order against futures trading fraudsters

Maria Nikolova

The CFTC is requesting that the New York Southern District Court issues a default order against the operators of a Ponzi scheme that solicited at least $1,191,000 from over 40 individuals.

The United States Commodity Futures Trading Commission (CFTC) has requested that the New York Southern District Court enters a default order against Hasan Sarwar and Rachida Elfrimi, operators of Profit Management, a Ponzi scheme purported to be a futures trading business.

The Motions were filed by the CFTC on November 8, 2017.

According to the CFTC findings, from at least October 2012 through at least July 2014 Defendants Hasan Sarwar and Rachida Elfrimi operated a Ponzi scheme by which they fraudulently solicited and received at least $1,191,000 from over 40 individuals who invested in what was dubbed “futures trading” in a commodity pool named Profit Management.

The scheme operated via two websites: and, which both touted the Profit Management pool. These websites claimed that Profit Management had “over 15 years of successful online futures trading experience … doing exactly what the ‘Big Boys’ and the Billionaires do inside the trading pit to move the market up or down any given minute.” The scheme also made false promises about returns: one of the marketing messages said that pool participants would “Double [their] Money in Less Than 5 months.”

In reality, the pool did not engage in any futures trading and Sarwar engaged in unprofitable futures trading for his own account, whereas the pool had not earned any futures trading profits. The pool participant funds were not placed in a Profit Management pool account under the name of a separate legal entity, but were instead deposited into bank accounts held in the names of and controlled by Sarwar and Elfrimi. Sarwar then transferred some of the money received from pool participants to a trading account held under his name. The rest of the money was used either for business or personal expenses, or Ponzi-style payments to pool participants from other participants’ funds.

The defendants are accused of, inter alia, fraud in connection with sale or purchase of futures contracts, failure to operate a commodity pool as a separate legal entity and commingling of pool funds, as well as of failure to register as CPOs.

The CFTC asks the Court to enjoin Defendants’ unlawful acts and practices and to compel their compliance with the Act. In addition, the Commission seeks civil monetary penalties, restitution, disgorgement, and remedial ancillary relief, such as trading and registration bans, rescission, pre- and post-judgment interest.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”