August 3, 2016

CFTC Orders Georgia Resident Jonathan A. Parker and His Company QuantX Capital, LLC to Pay a Civil Monetary Penalty and Restitution Totaling More than $1 Million for Engaging in Foreign Exchange Commodity Pool Fraud

Parker and QuantX Misappropriated at Least $341,500 of Customer Funds for Business and Personal Expenses

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today entered an Order requiring Jonathan A. Parker and QuantX Capital, LLC (QuantX), both of Marietta, Georgia, jointly and severally to pay a $680,000 civil monetary penalty and restitution totaling $341,500 and imposing permanent trading and registration bans on them for committing fraud and misappropriation in connection with operating a commodity pool that offered leveraged or margined off-exchange foreign currency (forex) transactions. Parker, a former CFTC registrant, is the CEO, President, and sole owner of QuantX and is responsible for all the company’s activities.

According to the Order, from at least November 2010 through October 2015, Parker and QuantX fraudulently solicited and accepted at least $341,500 from at least eight individuals to make pooled investments in retail off-exchange forex transactions, but none of the funds were ever deposited into a pooled account or used for retail forex transactions. Instead, the Order finds that Parker and QuantX fraudulently misappropriated at least $341,500 of the funds for business and personal expenses. The Order also finds that Parker and QuantX created and distributed account statements to investors that falsely claimed that they had engaged on behalf of investors in retail forex transactions that were profitable and made other material misrepresentations to investors.

In addition, QuantX acted as a Commodity Pool Operator and Parker acted as an Associated Person of QuantX without being registered with the CFTC as required, the Order finds.

The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets.  The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.

The CFTC thanks the National Futures Association for its assistance in this matter.

CFTC Division of Enforcement staff members responsible for this case are Michael P. Geiser, Alben Weinstein, David W. MacGregor, Lenel Hickson, Jr., and Manal M. Sultan.

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CFTC’s Forex Fraud and Commodity Pool Fraud Advisories

The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud. 

The CFTC has also issued a Commodity Pool Fraud Advisory, which warns customers about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools.

Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online. 

Media Contact
Dennis Holden
202-418-5088
 

Last Updated: August 3, 2016