Release Number 8399-21
CFTC Charges Texas Man and His Company with Forex Fraud
June 23, 2021
Washington, D.C. — The Commodity Futures Trading Commission announced today that it has filed a civil enforcement action in the U.S. District Court for the Southern District of Texas against Troy Mason of Houston, Texas and his Texas-based company, ZTegrity, Inc., charging them with fraudulent solicitation and failing to register with the CFTC as required by the Commodity Exchange Act (CEA).
On June 10, 2021 the court entered a restraining order freezing assets and requiring the preservation of documents.
In its continuing litigation, the CFTC seeks full restitution to defrauded clients, disgorgement of any ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against further violations of the CEA, as charged.
The complaint alleges that from at least October 2019 to the present the defendants used various websites and social-media platforms to fraudulently market their forex trading pool as a version of a savings account that offered a greater yield with similarly low or no risk. The defendants called this forex trading pool “The Black Club” and “The Forex Savings Club,” which their website claimed had received over $460,000 from 411 participants.
The complaint further alleges the defendants induced participation in their forex trading pool by falsely claiming to “guarantee” to repay participants the funds they contributed to their individual “Forex Savings Accounts” and falsely offered participants “with a 100% certainty” portions of the “substantial profit[s]” to be generated using participants’ pooled funds to trade forex. Rather, as alleged in the complaint, the defendants knew or recklessly failed to appreciate that no forex trader can guarantee profitable trading, or the avoidance of losses required to guarantee all participants’ contributions, and knew, but failed to inform participants that they had no U.S.-based forex trading accounts.
The CFTC thanks the Texas State Securities Board for its assistance in this matter.
The Division of Enforcement staff members responsible for this case are Tobias Fischer, Kyong J. Koh, Peter Haas, Luke B. Marsh, and Paul G. Hayeck.
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CFTC’s Forex Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Forex Trading Fraud Advisory, to help customers identify these scams.
The CFTC also strongly urges the public to verify a company’s registration with the CFTC before committing funds. If unregistered, a customer should be wary of providing funds to that entity. A company’s registration status can be found using NFA BASIC.
Customers and other individuals can report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382), file a tip or complaint online, or contact the Whistleblower Office. Whistleblowers are eligible to receive between 10% and 30% of the monetary sanctions collected paid from the Customer Protection Fund financed through monetary sanctions paid to the CFTC by violators of the CEA.