Commodity Pool Fraud: Tennessee Couple Ordered to Pay Almost $7 Million
A married couple from Tennessee, Michael Griffis and Amanda Griffis, has been instructed to pay a penalty of nearly $7 million for their involvement in a commodity pool fraud, as announced by the Commodity Futures Trading Commission (CFTC) on Thursday. The couple, who acted as brokers, convinced 145 individuals to contribute $6.5 million to a community pool known as “blessing through crypto”.
According to the CFTC’s press release, the duo claimed that the funds would be used to trade futures on the APEX trading platform with the guidance of a person known as “coach Wendy”. However, in reality, the commodity pool was a replica of an overseas exchange, and the identity of “coach Wendy” remains unclear. The CFTC’s investigation revealed that more than $4 million of the pool funds were sent to the illegitimate exchange overseas, where it was immediately transferred to various other accounts and offshore trading platforms.
CFTC Bans Broker Couple for Alleged Crypto Scheme
The remaining funds were misused for personal expenses, including the payment of personal debts and the purchase of a large number of consumer goods. As a result, the couple has been ordered to pay $5,528,121 in restitution to the victims and a civil monetary penalty of $1,355,232. In total, the duo must pay over $6.8 million in monetary relief.
In addition to the financial penalty, the couple is also prohibited from trading and registration with the CFTC and is prohibited from further violations of the Commodity Exchange Act and CFTC regulations. Charles Marvine, Deputy Director of the Task Force for Fraud and General Enforcement of the Retail Department, warned investors to be cautious when trusting others with their money. “If an investment opportunity seems too good to be true, it likely is,” he said.
Conclusion
The case serves as a reminder of the importance of due diligence and caution when investing in commodity pools or other investment opportunities. It is essential to research the legitimacy of the investment and the individuals involved before contributing funds. For more information on this case, visit the source link.
