The Commodity Futures Buying and selling Fee (CFTC) has filed fraud costs in opposition to Alan Friedland and his firms, Fintech Funding Group, Inc. and Compcoin LLC. The CFTC claims that Friedland and his Florida based mostly companies fraudulently solicited over $1.6 million in reference to a leveraged or margined off-exchange international forex (foreign exchange) scheme.
In response to the grievance filed by the CFTC, beginning in not less than 2016 and continuing by means of 2018, Friedland and his firms solicited prospects to buy a digital asset generally known as Compcoin. The defendants allegedly described Compcoin as enabling prospects to realize entry to Fintech’s proprietary foreign currency trading algorithm generally known as ART claiming that ART would ship excessive charges of return.
The CFTC submitting states that the defendants stated the use and performance of Compcoin and ART was prepared to be used.
The grievance alleges that the defendants knew that no buyer might lawfully make the most of ART till Fintech obtained approval from the Nationwide Futures Affiliation (NFA), which by no means occurred. The CFTC claims that purchasers of Compcoin had been “left with a worthless asset.”
“The CFTC stays dedicated to defending market individuals from fraudulent schemes, together with novel types of fraud just like the one alleged right here, the place defendants allegedly solicited prospects to buy a digital asset to be able to acquire entry to Fintech’s purported foreign currency trading algorithm,” commented CFTC Director of Enforcement James McDonald.
In its persevering with litigation in opposition to the defendants, the CFTC seeks civil financial penalties, restitution, everlasting registration and buying and selling bans, and a everlasting injunction in opposition to additional violations of the Commodity Change Act and CFTC laws, as charged.
In a associated motion, the Nationwide Futures Affiliation filed a member accountability motion in opposition to the Fintech Funding Group and an related accountability motion in opposition to Friedland based mostly on their failure to cooperate with the NFA in offering info associated to a number of the identical actions which can be alleged within the CFTC’s grievance. The motion summarily suspended Fintech and Friedland from NFA membership and prohibits them from soliciting and accepting any buyer funds associated to foreign currency trading, amongst different issues.
Of word, in 2018, a lawsuit was filed by Marland Kaplan in opposition to Compcoin, Fintech Funding Group, Freidland and affiliated defendents.
CFTC v. Fintech Funding Group, Compcoin, Alan Friedland enffintechalancomplaint041620