US Court issues Receivership Order in CFTC case targeting fraudulent FX scheme OIG

The proceedings against fraudulent Forex scheme Oasis International Group, Ltd. (OIG) and the entities and individuals associated with it continue at the Florida Middle District Court.

The latest filings in the case brought by the Commodity Futures Trading Commission (CFTC) include a Consolidated Receivership Order. The document was signed by Judge Virginia M. Hernandez Covington on July 11, 2019.

As per the Order, seen by FinanceFeeds, the Court takes exclusive jurisdiction and possession of the assets of the following Defendants and Relief Defendants: Oasis International Group, Limited; Oasis Management, LLC; Satellite Holdings Company; Michael J. DaCorta; Joseph S. Anile, II; Raymond P. Montie, III; Francisco “Frank” L. Duran; John J. Haas; Bowling Green Capital Management, LLC; Lagoon Investments, Inc.; Roar Of The Lion, Fitness, LLC; 444 Gulf of Mexico Drive, LLC; 4064 Founders Club Drive, LLC; 6922 Lacantera Circle, LLC; 13318 Lost Key Place, LLC; and 4Oaks LLC.

Burton W. Wiand, Esq. of Wiand Guerra King P.A. is appointed to serve without bond as receiver for the estates of the defendants. The Order also constitutes the appointment or re-appointment of the receiver.

All receivership property remains frozen until further order of this Court. Accordingly, all persons and entities with direct or indirect control over any Receivership Property, other than the Receiver, are hereby restrained and enjoined from directly or indirectly transferring, setting off, receiving, changing, selling, pledging, assigning, liquidating or otherwise disposing of or withdrawing such assets. This freeze shall include, but not be limited to, Receivership Property that is on deposit with financial institutions such as banks, brokerage firms, and mutual funds. This freeze shall also include but not be limited to Receivership Property held as real property, personal property, intangibles, collectibles, metals, and cryptocurrencies.

As per the Order, the Receiver is authorized to take immediate possession of all assets, bank accounts or other financial accounts, books and records, and all other documents or instruments relating to the Receivership Defendants.

The Receiver is authorized to take all actions to manage, maintain, and/or wind-down business operations of the Receivership Defendants, including: (i) furloughing, terminating, and/or engaging employees on a contract basis; (ii) closing the business; and (iii) making legally required payments to creditors, employees, and agents of the Receivership Estates and communicating with vendors, investors, governmental and regulatory authorities, and others, as appropriate.

The Receiver shall also take all necessary steps to enable the Receivership Funds to obtain and maintain the status of a taxable “Settlement Fund”.

Let’s recall that, in its Complaint, the CFTC alleges 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.