The Commodity Futures Buying and selling Fee (CFTC) has launched a lawsuit in opposition to Roberto Pulido and Lions of Foreign exchange LLC.
The CFTC grievance, filed with the Florida Southern District Courtroom on September 28, 2023, alleges that from not less than January 2019 to not less than March 2021 (the “Related Interval”), Roberto Pulido a/ok/a Berto Delvanicci, aided and abetted by Lions of Foreign exchange LLC (LOF), fraudulently solicited purchasers for the purported function of buying and selling leveraged or margined retail off-exchange overseas forex in accounts to be managed on their behalf.
Among the purchasers solicited by the defendants subscribed to a retail foreign exchange indicators buying and selling service provided by LOF for which LOF provided to ship indicators to purchase or promote retail foreign exchange for a month-to-month charge, and, for the next month-to-month charge, provided dwell one-on-one coaching with “Berto Delvanicci.”
In fraudulently soliciting these purchasers, Defendants made use of the mails and different means or instrumentalities of interstate commerce, i.e., social media platforms, LOF’s web site, texts and/or different types of digital and telephonic communications.
Pulido, aided and abetted by LOF, falsely represented to purchasers that they’d earn assured month-to-month earnings by having Pulido use his discretion to purportedly commerce retail foreign exchange on their behalf, and that purchasers may withdraw their funds and have them returned at any time.
Based mostly on these fraudulent representations and omissions, purchasers had been fraudulently induced to switch not less than $175,000 to financial institution accounts within the title of LOF and others, all of which had been managed by Pulido, for the purported function of getting Pulido use his discretion to commerce retail foreign exchange on their behalf.
Shoppers weren’t paid their assured month-to-month earnings as promised, and, despite purchasers’ requests to Pulido and/or LOF to return their funds, shopper funds totalling not less than $170,000 haven’t been returned to purchasers.
On the time such representations had been made, Pulido acted deliberately or recklessly in falsely guaranteeing earnings from the buying and selling and falsely representing that purchasers may withdraw their funds and have them returned at any time. LOF knew that these representations made by Pulido had been false.
The CFTC accuses Pulido of violations of Sections 4b(a)(2)(A) and (C) of the Act, 7 U.S.C. §§ 6b(a)(2)(A), (C), and Fee Regulation 5.2(b)(1) and (3), 17 C.F.R. § 5.2(b)(1), (3) (2022).
Additional, by this conduct, in the course of the Related Interval and pursuant to the Retail Foreign exchange Fraud Scheme, Pulido acted as a Commodity Buying and selling Adviser (“CTA”) as outlined in Part 1(a)(12) of the Act, 7 U.S.C. § 1(a)(12), and violated Part 4o(1)(A) and (B) of the Act, 7 U.S.C. §6o(1)(A), (B).
In the course of the Related Interval, by this conduct and the conduct additional described herein, LOF knowingly related itself with this Retail Foreign exchange Fraud Scheme and took part in it to make it succeed and thereby willfully aided and abetted Pulido’s Retail Foreign exchange Fraud Scheme pursuant to Part 13(a) of the Act, 7 U.S.C. § 13c(a).
In the course of the Related Interval, Pulido has immediately or not directly managed LOF and LOF’s financial institution accounts as its Chief Government Officer (CEO) and sole supervisor. In his capability as controlling particular person of LOF, Pulido has not acted in good religion or knowingly induced, immediately or not directly, the acts of LOF that represent violations of the Act and Laws. Defendant Pulido is subsequently answerable for LOF’s violations pursuant to Part 13(b) of the Act, 7 U.S.C. § 13c(b).
The CFTC seeks financial penalties, disgorgement and restitution, in addition to injunctions in opposition to the defendants.