Release Number 8656-23

CFTC Charges Three Puerto Rico Residents and Their Companies with Misappropriating Over $13 Million in Connection with Commodity Pool Ponzi Scheme

February 13, 2023

Washington, D.C.The Commodity Futures Trading Commission today announced it filed a complaint in the U.S. District Court for the District of Puerto Rico against Ramon Salvador Delgado-Gomez (Gomez) and his companies FX Latino (FXL) and FXL Investment PR LLC (FXLI), Walmy Rivera-Santiago (Rivera) and her company JRH Services Inc. (JRH), and Hector Javier Santos-Pagan (Santos) and his company Infinity Investment and Construction Management Corp. (Infinity), charging them with fraud and registration violations in connection with a multi-million dollar Ponzi scheme involving pooled investments in retail foreign currency trading (forex).

In its continuing litigation against the defendants, the CFTC seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged. 

Case Background

The complaint alleges that from approximately November 18, 2019 through February 8, 2021, Gomez and FXL, aided and abetted by, among others, Rivera and Santos and their respective companies, JRH and Infinity, conducted a scheme which solicited and accepted at least $17 million from over 2,000 individuals and entities in Puerto Rico and the continental United States for the purpose of engaging in a pooled investment in forex trading. According to the complaint, rather than using the pool participants’ funds to trade on behalf of the pool, FXL engaged in little to no trading, and, instead, FXL and Gomez misappropriated at least $13 million of pool participants’ funds to pay purported returns to existing pool participants in a manner typical of a Ponzi scheme. The complaint further alleges Gomez and FXL misappropriated pool participant funds to pay business and personal expenses and to make payments to Gomez, some of the aiders and abettors, and other unnamed individuals and entities involved in the scheme.

As charged, FXLI, JRH, and Infinity, by and through their respective principals, Gomez, Rivera, and Santos, aided and abetted FXL’s and Gomez’s misappropriation by, among other things, using FXLI’s, JRH’s, and Infinity’s bank accounts to accept pool participants’ funds; transfer pool participants’ funds amongst themselves, FXL, Gomez, and other entities and individuals involved in the scheme; and make Ponzi-type payments to pool participants.

The complaint also charges FXL with failure to register as a commodity pool operator (CPO) and Gomez with failure to register as an associated person of a CPO.

The CFTC appreciates the assistance of the U.S. Customs and Border Protection, the Australian Securities and Investments Commission and the Monetary Authority of Singapore.

The Division of Enforcement staff responsible for this matter are Erica Bodin, Kara Mucha, Brian Hunt, Alan Edelman, Aimee Latimer-Zayets, and Rick Glaser.