September 28, 2018
CFTC Charges Georgia-Based Company and Its Chief Executive with Forex Fraud Involving Thirty Customers
Washington, DC – The Commodity Futures Trading Commission (CFTC) filed an enforcement action in the U.S. District Court for the Northern District of Georgia against Defendants Lucrative Pips Corporation and its founder and chief executive officer Kevin Perry, charging the Defendants with commodity fraud and misappropriation related to an ongoing off-exchange foreign currency (forex) scheme in which they solicited and misappropriated funds totaling at least $400,000 from at least 30 customers.
Specifically, the CFTC Complaint alleges that from at least December 2016 through the present, Defendants fraudulently solicited potential and existing customers by making false and misleading claims about their forex trading strategy and returns. Defendants falsely represented that they were profitably trading forex and promised potential customers that their accounts would grow in value approximately 200% to 350% in less than sixty days and that the customers’ initial deposits with Defendants was fully “guaranteed” against trading losses. Defendants, however, did not successfully trade forex but instead, lost money trading or misappropriated the $400,000 they solicited from customers, according to the Complaint.
In its continuing litigation in the U.S. District Court for the Northern District of Georgia against Defendants, the CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, restitution, permanent registration and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act, as charged.
The CFTC thanks and acknowledges the assistance of the St. Vincent and the Grenadines Financial Services Authority.
CFTC Division of Enforcement staff members responsible for this action are Jason Gizzarelli, Patricia Gomersall, Hillary Van Tassel, Traci Rodriguez, and Paul Hayeck.
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CFTC’s Foreign Currency (Forex) Fraud Advisory
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.