The Commodity Futures Trading Commission (CFTC), the U.S. derivatives market regulator, has announced that Carlos E of the U.S. District Court for the Central District of Florida.Judge Mendoza issued a default judgment that issued a permanent injunction and imposed monetary sanctions on Florida resident Avinash Singh and his company Highrise Advantage.。

The order resolves a September 9, 2020, civil enforcement lawsuit filed by the CFTC against Singh, Highrise and eight other defendants for a multi-layered, multi-million dollar, over-the-counter foreign exchange trading (FX) program.。The case was subsequently amended on February 4, 2021, adding new facts about the extent of the fraud and an additional fraud charge.。

The order found that Singh fraudulently raised and misappropriated funds through the main commodity pool Highrise and four linked commodity pools; failed to register with the CFTC as required; and violated regulatory requirements related to operating commodity pools。

The court's default order and permanent injunction barred Singh and Highrise from engaging in violations of the Commodity Exchange Act (CEA) and CFTC regulations and ordered them to pay $25,558,594 in damages and $76,675,782 in civil fines.。The order also permanently bars Singh and Highrise from registering with the CFTC and prohibits them from trading with any registered entity.。

On July 5, 2023, the court ruled against SR & B Investment Enterprises, Inc., the operator of the four connected commodity pools.., Green Knight Investments, LLC, Bull Run Advantage, LLC and King Royalty, LLC.and its operators, Surujpal Sahdeo, Daniel Colegero, Randy Rosseau and Hemraj Singh, each issued a consent order that comprehensively settled the litigation。

Case Background

The order found that Highrise and Singh collected nearly $58 million from investors and feeder funds, but used less than $2.5 million in actual foreign exchange transactions, misappropriated more than $25 million, and used investors' funds to make Ponzi scheme-style payments and cover personal expenses.。Statements sent by the master pool to investors and feeder funds falsely show profits without losses。

parallel criminal proceedings

On February 17, 2021, Singh was also indicted by federal prosecutors for the Middle District of Florida on 10 counts of wire fraud and six counts of money laundering.。He did not appear at the scheduled hearing and was a fugitive until his recent arrest on an unexecuted warrant in Florida on October 19, 2023.。Judge Mendoza and Robert-M-Norway Magistrate are hearing the criminal case against Singh.。

The CFTC cautioned that an order requiring reimbursement of funds to victims may not recover any lost funds because the wrongdoer may not have sufficient funds or assets.。The CFTC will continue to fight aggressively to protect customers and ensure wrongdoers are held accountable。

The CFTC would like to thank the US Attorney for the Central District of Florida, the National Futures Association, the Cyprus Securities and Exchange Commission, the UK Financial Conduct Authority and the Australian Securities and Investments Commission for their assistance in this matter.。