Release Number 8556-22
Federal Court Imposes Over $29 Million in Restitution and Penalties Against California and Colorado Residents for Binary Options and Forex Fraud, Registration Violations, and Failure to Comply with Commodity Pool Operator Regulations
July 15, 2022
Washington, D.C. — The Commodity Futures Trading Commission today announced the U.S. District Court for the Eastern District of California entered an order granting the CFTC’s motion for entry of default judgment against California-based John D. Black and his affiliated entities Financial Tree (d/b/a Financial Tree Trust); Financial Solution Group (d/b/a Financial Solution Group Trust); and New Money Advisors, LLC; and his associates Christopher Mancuso and Joseph Tufo; as well as Colorado-based John P. Glenn and his law firm, The Law Firm of John Glenn, P.C. The order finds they are liable for solicitation fraud in connection with binary options and retail foreign currency (forex) transactions, fraud by commodity pool operators (CPOs) and associated persons (APs), multiple CFTC registration violations, and failure to comply with CPO regulations.
The order imposes on Black, Financial Tree, Financial Solution, New Money, Mancuso, Glenn, and Glenn’s law firm obligations to pay nearly $10.5 million in restitution jointly and severally; and Tufo to pay over $4.5 million of that restitution jointly and severally with the other defendants. The order further imposes civil monetary penalties of approximately $5.4 million on Black, Financial Tree, Financial Solution, and New Money; $12.1 million on Mancuso; $680,000 on Tufo; and $850,000 on Glenn and his law firm. Additionally, under the order, the defendants
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 CFTC Whistleblower Office. Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected paid from the CFTC Customer Protection Fund financed through monetary sanctions paid to the CFTC by violators of the CEA.