The CFTC or the Commodity Futures Trading Commission has gone to New York Southern District Court to notify it about the actions the regulator is taking against VOS Capital Management LLC and Dominick Vincent Carducci.
The financial industry is full of rats, that much is certain. With an incredible amount of money rolling through the industry by the minute, it’s almost expected that criminal elements will try and take advantage of that fact to enrich themselves. The US regulator CFTC has officially submitted the certificates of default for VOS Capital Management. Within these certificates, it could be discerned that the CTFC started its actions against VOS back on the 9th of September, 2019.
Ignoring the Rules
They first filed a summons and complaint and had a copy of it sent to the defendants. The defendants didn’t even care to file an answer or move in such a way as to acknowledge it. The CTFC is now forced to take further steps and asked the Court’s clerk to note the default of VOS Capital Management and Dominick Vincent Carducci.
The CFTC Complaint explained that between the time periods of August 2016 and September 2018 (Referred to as the Relevant Period), the defendants ran a fraud scheme. By using this scheme the defendants have accepted, solicited and misappropriated the funds of a pooled investment vehicle. The investment pool ran on off-exchange leveraged Forex contracts.
Carducci’s Many Wrongs
Carducci acted as an agent and officer for VOS Capital. It’s alleged that Carducci made intentional misrepresentations and omissions of fraudulent activity and materials. He did this both in verbal and written communication, giving incorrect information about his FX trading and returns. At least thirty investors were misled by this misrepresentation and transferred a minimum of $1.1 million to the defendants with the intent of partaking in their pooled investment vehicle.
The CFTS continued by saying VOS Capital and Carducci are engaging, have engaged, or will engage in numerous actions violating the Commodity Exchange Act and the Commission Regulation rules. These rules were put in place to prevent fraud in commodity pool operators and forex transactions.
The CFTC furthers this by stating that the VOS did all pretending to be a Commodity Pool Operator (CPO) without being an eligible contract participant. The complaint is furthered by pointing out that they were doing retail FX transactions without registration of the Commission as a CPO.
CFTC Demands Restitution
The CFTC is out for blood in seeking reparations on this matter. They are seeking remedial ancillary relief and civil monetary penalties for a large number of charges. Things like restitution disgorgement, trading and registration bans, pre- and post-judgment interest, rescission, and other forms of relief the Court deems appropriate.
Crime pays. It’s just a matter of when your luck runs out, and you have to pay back the interest.