CFTC sues Coby Young over $300,000 Forex fraud
The CFTC has filed a lawsuit against Coby Young and Young Emerging Strategies LLC, alleging fraudulent practices in forex transactions and violations of commodity pool operations.
The U.S. Commodity Futures Trading Commission (CFTC) has initiated legal proceedings against Coby Young and his Illinois-based company, Young Emerging Strategies LLC. The defendants stand accused of multiple infractions including fraud in retail foreign exchange (forex) trading, regulatory breaches, and misappropriation of funds.
The CFTC’s legal complaint, lodged in the U.S. District Court for the Northern District of Illinois, outlines a series of serious allegations. Coby Young and his firm purportedly engaged in deceptive retail forex activities, operated a commodity pool without the necessary CFTC registration, failed to provide essential disclosures to participants, did not maintain required records, and improperly commingled pool assets.
Coby Young diverted funds instead of doubling users’ investments
From August 2019 to the present, Young and his company allegedly solicited individuals through various channels to partake in retail forex trading classes, subsequently recruiting some participants into a trading pool. The operation amassed approximately $300,000 from participants by promising to double their investments through forex trading. Contrary to these promises, the defendants are accused of diverting the majority of these funds for personal use, including cash withdrawals and payments to other participants.
In response to these allegations, the CFTC is pursuing a comprehensive range of penalties and remedial actions. The commission is seeking restitution for affected pool participants, disgorgement of profits acquired by the defendants through wrongful means, civil monetary penalties, and permanent bans on trading and registration for the defendants. Additionally, the CFTC is requesting a permanent injunction to prevent further breaches of the Commodity Exchange Act and CFTC regulations.
The CFTC has made it clear that protecting consumers from fraudulent forex operations and commodity pool schemes is a priority. Through its advisories, the commission educates the public on the signs of fraudulent activities and encourages due diligence, such as verifying a company’s CFTC registration via NFA BASIC, before committing funds.
The CFTC also promotes active reporting of suspicious activities and offers incentives for whistleblowers who provide information leading to the enforcement of commodity trading laws. These measures reflect the CFTC’s commitment to maintaining the integrity of the forex market and safeguarding investor interests.