The CFTC has filed a civil complaint over an alleged forex-pool scheme that accepted more than $950 million and caused at least $406 million of participant losses. The case, announced on 25 September, brings Cash FX Group S.A. and four other defendants before the US District Court for the Middle District of Florida. The allegations remain unproven.[1][2]
The named defendants are Cash FX Group S.A.; its chief executive, Huascar Jose Lopez Castillo; The Conversion Pros, Inc.; its chief executive, Ronald Pope; and Justin Halladay. The CFTC alleges the defendants used a multilevel-marketing network to recruit participants into a purported retail-forex commodity pool.[1]
Allegations in the complaint
| Measure | Value | Context |
|---|---|---|
| Money accepted | More than $950m | Funds were allegedly solicited from the public for purported retail-forex pool trading.Source 1 |
| Promised return | Up to 15% weekly | The return was presented as coming from trading expertise, algorithms and AI.Source 1 |
| Alleged participant loss | At least $406m | This is the regulator’s pleaded loss figure, not a final recovery amount.Source 1 |
| Venue | Middle District of Florida | The civil case proceeds in federal court.Source 1Source 2 |
How the alleged money flow supported the sales story
How the CFTC describes the scheme
| Step | Alleged representation | CFTC allegation |
|---|---|---|
| Solicitation | Funds would enter a retail-forex trading pool | Participants were recruited through a multilevel-marketing structureSource 1 |
| Trading story | Experts, algorithms and AI generated returns | Only minimal forex trading occurredSource 1 |
| Account reporting | Statements reflected trading profits | Statements were false and sustained the appearance of returnsSource 1 |
| Payments | Withdrawals represented earned profit | New contributions funded fictitious profits and defendant paymentsSource 1 |
The complaint links the trading claims, account statements and payments into one alleged mechanism. Promised returns of up to 15% a week were attributed to expert traders, algorithms and AI; the CFTC says minimal forex trading occurred. False statements allegedly made the reported gains look like trading results, while new participant contributions supplied the cash for fictitious profits and payments to defendants.[1]
This is a pooled-funds case: the regulator’s theory concerns how contributions to a collective investment operation were used and recorded. The operational question is whether the underlying trading and cash records support the returns represented to participants.[1]
Restitution is one of five requested remedies
What the CFTC asks the court to order
| Remedy | Purpose | Current status |
|---|---|---|
| Restitution | Compensate customers for qualifying losses | Requested, not awardedSource 1 |
| Disgorgement | Remove gains linked to alleged violations | Requested, not awardedSource 1 |
| Civil monetary penalties | Regulatory penalty | Requested, amount not finally setSource 1 |
| Trading and registration bans | Restrict future market participation | RequestedSource 1 |
| Permanent injunction | Prevent further charged conduct | RequestedSource 1 |
Restitution would compensate qualifying losses if ordered and implemented. The amount ultimately available for distribution would depend on recoverable assets, competing claims and the court-approved process. The pleaded $406 million loss figure therefore measures the alleged harm; it does not supply a forecast recovery percentage for individual participants.[1]
Court filings, interim orders and any eventual judgment or settlement will establish the next procedural developments. The complaint gives the regulator’s account of the conduct and requested relief at this stage.[2][1]
Sources & further reading
- CFTC charges Cash FX Group and others with $950 million fraud scheme Commodity Futures Trading Commission · 25 Sep 2026 · Accessed 16 Oct 2026
- CFTC enforcement actions index and Cash FX complaint entry Commodity Futures Trading Commission · Accessed 16 Oct 2026