Purported “experienced” FX trader gets convicted of defrauding investors

Maria Nikolova

Jason Amada is sentenced to 3 to 6 years in prison for stealing more than $489,000 from investors in FX trading scheme.

New York Attorney General Letitia James has announced the conviction and sentencing of former stockbroker Jason Amada, 42, of Forest Hills, Queens, for stealing over $489,000 from victims who had invested in his fraudulent FX trading venture. Amada was sentenced in New York County Supreme Court to three to six years in prison after signing confessions of judgment in favor of his eight victims.

In September, Amada pleaded guilty to Grand Larceny in the Second Degree, a Class C felony, and Scheme to Defraud in the First Degree, a Class E felony, before the Honorable Maxwell Wiley in New York County Supreme Court. His guilty pleas resolved two sets of charges brought by the Attorney General’s Criminal Enforcement and Financial Crimes Bureau.

The indictment charges Amada with fraudulently soliciting a client to invest €250,000, and then losing 99% of her principal in less than 45 days of aggressive foreign currency trading. Following his arrest, additional victims reported that they had invested and lost money with Amada under similar circumstances. The Office of the Attorney General filed charges against Amada related to claims brought forward by seven other victims who were fraudulently solicited to invest with Amada between March 2015 and November 2018. In total, Amada defrauded investors out of more than $489,000.

Amada presented that he was an experienced Forex trader and the operator of multiple legitimate investment management firms. However, he failed to disclose to his victims that he had not been a licensed broker since 2012. Amada also did not reveal that the various ventures he claimed to be associated with – Amada Capital Management, LLC, Amada Capital, LLC, and Evolution FX Trading – were shell corporations with no employees or genuine operations. They also were not registered with any regulatory authorities to trade foreign currencies.

Amada persuaded the victims that he could trade Forex safely and that capital preservation strategies would be employed to protect their investments. In reality, Amada used highly-leveraged, aggressive trading tactics that resulted in the rapid and complete dissipation of his victims’ funds, while at the same time earning over $150,000 in fees and commissions for himself.

In addition to his high-risk trading strategies, Amada also diverted investor monies to pay for his own personal expenses. Between 2015 and 2018, he spent approximately $100,000 of investor dollars on travel, dining, clothing, credit card bills, personal loans, payments to family and friends, purchasing cryptocurrency, and even on online gambling; he also made over $83,000 in cash withdrawals.

In furtherance of his scheme, Amada concealed the trading losses and misappropriation of investor funds by providing his victims with fake account statements. Every month, Amada invented details of profitable trades to enter into elaborate statements that he would email his victims. These statements showed increasing account balances and swelling profits. Amada deceived some of his victims for years about the status of their investments. They only discovered the truth once they asked Amada to return their investments, and he could not do so.

Read this next

Crypto Insider

Gate.io lists DeFiChain’s DFI token amid growing popularity

Bitcoin-based DeFi platform DeFiChain announced the listing of its native DFI token on Gate.io, one of the world’s leading cryptocurrency exchanges.

Digital Assets

Binance in discussions with Japan regulators to relaunch operations

Binance, the world’s largest crypto exchange by traded volume, is reportedly seeking a license to operate in Japan after its exit from the country four years ago.

Digital Assets

OKX Chain integrates .crypto domains to simplify wallet transactions

Unstoppable Domains, a company building Blockchain domain names, has entered a partnership with EVM and IBC compatible chain OKC (OKX Chain). This collaboration will grant OKC’s users the ability to simplify deposits and withdrawals within the regulated fiat-focused crypto-asset exchange.

Retail FX, Technology

MetaTrader’s iOS issue opens brokers’ eyes to other trading platforms

In a surprising (or-not-so-surprising) move, Apple has removed MetaTrader 4 and MetaTrader 5 from its App Store in a huge blow for the leading FX trading platform provider.

Retail FX

Pepperstone adds Capitalise.ai analytics and automated trading tools free of charge

“We look forward to bringing significant value to Pepperstone traders and making a real, positive impact in their daily trading habits. We are excited to welcome them on board.”

Retail FX

FP Markets wins Best Global Value Broker for 4th consecutive year at the 2022 Global Forex Awards

“We greatly appreciate the continued international recognition as at FP Markets we pride ourselves on these attributes and these prestigious awards are testament to the hard work from our global team to always provide our clients with the ultimate trading experience.”

Inside View

How to Engage Your Customer at Every Stage of Their Journey

As many as 89% of successful businesses say that providing assistive customer experiences is critical to their growth. That’s because a mere 5% increase in customer retention can boost profits by 25% to 95%.

Industry News

CFTC fines Chinese firms Chinatex and COFCO $720,000 for wash trading

Chinatex traders engaged in wash trading in order to liquidate a long position in the account of an affiliated company and re-establish the position in its own account, to the ultimate benefit of its parent company, COFCO.

Industry News

US-based operation of Brazilian broker XP fined $500,000 for recordkeeping failures

“Proper recordkeeping is vital to protecting our markets and market participants from fraud and manipulation. This case serves as another example of the Commission’s intent to vigorously enforce the recordkeeping obligations of its registrants.”