U.S. Commodity Futures Trading Commission (CFTC) on Edwin M.Carrion, Jason F.Rodriguez and Technical Trading Team LLC (TTT) filed suit。

According to an indictment filed by the Commodity Futures Trading Commission in the Eastern District Court of New York, at least from January 2020 to the present (the "Relevant Period"), Edwin M.Carrion (in his personal capacity or as agent for TTT) and Jason F.Rodriguez (in his personal capacity or as an agent of TTT) and TTT operated a fraudulent scheme in which the defendant raised, accepted and misappropriated funds for pooled investments in leveraged or margin foreign exchange contracts, etc.。

Carrion, as CEO and agent of TTT, and Rodriguez, as COO and agent of TTT, knowingly or recklessly made fraudulent and material misrepresentations and omissions in conversations and written communications about TTT's retail foreign exchange trading strategy, their experience and past performance as investment managers, and the safety and risk management of investing in TTT's pools。

The defendants jointly persuaded about 27 individuals to invest at least $5 million in the TTT pool.。Investments are made in the form of loans from TTT pool participants to TTT, recorded in the form of promissory notes, and TTT promises to pay 1 per month.5% to 2% interest, i.e. 18% to 24% per annum。

In order to attract potential pool participants, the defendants Carrion and Rodriguez and TTT, through Carrion and Rodriguez, knowingly made materially false or misleading statements and omissions, including:

● Defendant provided the ability to participate in a high-yield loan scheme supported by a retail foreign exchange trading fund that can support interest payments of 18 to 24 per cent on an annualized basis.

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● The defendant's investment strategy was to risk 1 per cent of the TTT pool with the goal of a 3 per cent return on profits.

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Defendants have an extensive and successful track record of investing in retail forex and digital assets。

● These statements and omissions are materially false or misleading and induce pool participants and potential participants to invest funds in TTT。

Defendants disregarded the facts by making their retail foreign exchange transactions unable to meet their commitments to pay a fixed rate of return of 18 to 24 per cent to pool participants.。In fact, the defendant's retail foreign exchange transactions were not successful。

From April 2020 to October 2022, Defendants made retail foreign exchange transactions on a leveraged basis, losing more than $3.13 million in pool participant funds.。In addition, the defendant misappropriated participants' funds for personal use and used new participants' funds to pay interest to existing participants because the transaction was unprofitable。

On approximately October 11, 2022, Defendant notified certain pool participants that TTT had defaulted on the participant's loan and that TTT would no longer pay interest or principal due on the participant's promissory note。

The United States Commodity Futures Trading Commission alleges that the defendant violated Section 6 (c) (1), Section 4b (a) (2) (A) - (C), and Section 4o (1) (A) - (B) of the Commodity Exchange Act (the "Act") (Section 9 (1), Section 6b (a) (2) (A) - (C), Section 6o (1) (A)。1 (a) (1) - (3) and 5.2 (b) (1) - (3), 17 C.F.R.§ 180.1 (a) (1) - (3) 17 C.F.R.§ 5.2 (b) (1) - (3) (2022), Prohibition of Fraud and Fraud Related to Retail Foreign Exchange Transactions and Fraud by Commodity Pool Operators ("CPOs")。

In addition to the above-mentioned fraud, the defendant's technical trading team has acted as a CPO at all times during the relevant period, operating or raising funds for retail foreign exchange trading pools that are not qualified as qualified contract participants (ECP), and marketing to trading pool participants that are also not qualified as ECP, and engaging in retail foreign exchange trading without registering as a CPO with the Commission, in violation of section 2 (c) (2) (C) (iii。S.C.§ 2 (c) (2) (C) (iii) (I) (cc), 6m (1) and Regulation 5.3 (a) (2) (i), 17 C.F.R.§ 5.3 (a) (2) (i) (2022)。

In addition, Defendants Carrion and Rodriguez raised funds from Pool Participants (Section C) (Section C) (Section C) (Section C) for trading leveraged or margin retail foreign exchange contracts with other participants, and as officers, employees, or agents associated with Defendant Technical Trading Team and not registered with the Commission as a related person of Technical Trading Team ("AP"), in violation of Section 2 (c) (2) (C) (cc)。S.C.§ 2 (c) (2) (C) (iii) (I) (cc), 6k (2) and regulation 3.12 (a) and 5.3 (a) (2) (ii), 17 C.F.R.§ § 3.12 (a), 5.3 (a) (2) (ii) (2022)。

The Commission seeks civil fines and remedial ancillary relief, including, but not limited to, transaction and registration injunctions, restitution, forfeiture, revocation, pre-judgment and post-judgment interest。