US Court orders futures fraudster to pay more than $1.9m

Maria Nikolova

The CFTC alleges that Gregory L. Gramalegui had made fraudulent solicitation of customers in connection with the offering of a futures trading system and an advisory service.

The United States Commodity Futures Trading Commission (CFTC) has secured a win in a civil action against Gregory L. Gramalegui of Vail, Colorado, d/b/a Emini Trading School, the US regulator announced today.

A Colorado federal court has recently entered final judgment ordering Gramalegui, ordering the defendant to pay more than $1.9 million in civil monetary penalties and disgorgement. The Court ordered the defendant to pay a $1,442,070.51 civil monetary penalty and to disgorge $480,690.17 in ill-gotten gains. The Court also imposed permanent trading and registration bans on Gramalegui and permanently enjoined him from further violations of the CEA and CFTC Regulations, as charged.

The CFTC has alleged that Gramalegui fraudulently solicited customers in connection with the offering of a futures trading system and an advisory service. He is also alleged to have made false statements to the CFTC, and to have violated a prior CFTC order against him.

In his Opinion in this case, Judge Robert E. Blackburn of the U.S. District Court for the District of Colorado found that Gramalegui had engaged in a years-long scheme to fraudulently market and sell a futures trading system that did not work and an advisory service that did not deliver as promised and, in doing so, Gramalegui failed to provide required advertising disclosures to clients and prospective clients.

Furthermore, the Court found that Gramalegui’s unlawful activity violated a prior CFTC Order entered against him in 2001 based on his marketing of a previous deceptive trading system and advisory service. Back then, the CFTC issued an order finding that Gramalegui, who was doing business as S&P Safe Co., repeatedly used a false advertisement in marketing his commodity trading system called the Trend Reflection Trading System.

Specifically, the CFTC order from 2001 finds that from July 1998 to June 1999, Gramalegui, through advertisements in futures industry magazines, made false claims that his mother traded the Trend System, and implied that she had personally traded profitably. However, as the order notes, his mother did not personally trade with the system. The order clarified that Gramalegui made commodity trades in an account in his mother’s name, and contrary to the claims made by Gramalegui, the account had net losses. Gramalegui’s solicitations of the Trend System operated as a fraud or deceit upon customers, in violation of the Commodity Exchange Act (CEA).

The CFTC warns that orders requiring repayment of funds to victims may not lead to the recovery of any money lost because the wrongdoers may not have sufficient funds or assets.

Read this next

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”

Financewire

FBS Financial Market Analysts Forecast Gold Prices to Rise to $2,800

FBS, a leading global broker that has recently launched an upgraded FBS app, projects gold price surge to $2,800 per ounce by the close of 2024.

<