Release Number 8431-21
CFTC Orders Nevada Man and His Company to Pay $374,000 for Fraudulent Solicitation and Misappropriation in Forex Scheme
September 28, 2021
Washington, D.C. — The Commodity Futures Trading Commission today issued an order filing and settling charges against Cody Ryan Porter of Nevada and his company KatchPips FX LLC, a Nevada limited liability company, for misappropriating customer funds and for fraudulently soliciting more than $200,000 from over 18 individuals to invest in a forex commodity pool.
The order requires Porter and KatchPips to pay a $187,240 civil monetary penalty and $187,240 in restitution to defrauded customers, along with any post-judgment interest. In addition, the order imposes a permanent ban on Porter and KatchPips FX from trading on or subject to the rules of any CFTC-registered entity, and from engaging in any activities requiring CFTC registration.
According to the order, from approximately October 2019 through May 2021, Porter and KatchPips FX fraudulently solicited and accepted funds from 18 customers to participate in forex commodity pool. Customers were told that the forex commodity pool would earn 3 percent to 10 percent each month and that the pool would be traded through a registered retail forex dealer. Instead of placing customer funds into a forex commodity pool, Porter and KatchPips FX misappropriated the vast majority of customer funds for personal expenses such as food, rent and vacations. -Despite operating a forex commodity pool, neither Porter nor KatchPips FX was ever registered with the CFTC in any capacity. Customers suffered losses totaling over $187,000.
The CFTC cautions victims that restitution orders may not always result in the recovery of money lost, because wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure wrongdoers are held accountable.
The Division of Enforcement staff members responsible for this case are Patricia Gomersall, Jason Gizzarelli, Traci Rodriguez and Paul G. Hayeck.
CFTC’s Commodity Pool and Forex Fraud Advisories
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Commodity Pool Fraud Advisory and the Forex Fraud Advisory, which alert customers these types of fraud and list simple ways to spot them.
The CFTC also strongly urges the public to verify a company’s or individual’s registration with the CFTC before committing funds. If unregistered, a customer should be wary of providing funds to that company or individual. A company’s or individual’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 percent of the monetary sanctions collected paid from the Customer Protection Fund financed through monetary sanctions paid to the CFTC by violators of the CEA.