The U.S. Commodity Exchange Commission has filed a lawsuit against Erik J. Hass and his company, Simply Gains Inc. from Oregon. The regulator accuses them of fraud and illegal embezzlement, and also claims that the broker did not register properly in CFTC.
The lawsuit claims that more than 20 investors fell into the trap of fraudsters, who together contributed at least $2.1 million to the company, hoping that they would be invested in the currency or commodity pool. Despite assurances that the maximum losses will not exceed 20% of the deposited funds, the defendants lost more than $1 million tradings in the Forex market and appropriated at least another 415,000 dollars. This amount went to pay a mortgage Hass and a cruise in the Caribbean.
The complaint also alleged that the defendants fraudulently lured potential participants into a pool. They claimed to have extensive investment experience and promised high profitability with limited risk. Besides, in order to conceal their misappropriation and unprofitable trading on Forex, the defendants sent to the pool participants false statements from the account, allegedly with a profit.
Now the CFTC wants to seek restitution for defrauded investors, to return the illegally obtained income, and also to demand the payment of a fine and a permanent ban on registration and trade.
Oregon County Attorney charged Hass with five electronic fraud cases, two mail fraud cases, and one money laundering case on June 9, 2020.
The CFTC expressed gratitude to the Oregon Attorney’s Office and the state finance department for their active assistance.
CFTC Reminds of Fraud Risks
The Commission has published several warnings and recommendations related to Forex fraud. They detail the main signs of fraud.
The CFTC also encourages the public to carefully review the details of the company and its registration number with the Commission before investing. If there is no registration, you should be especially careful and refrain from investing in this company.
Forex fraudster schemes are very prevalent, especially with the development of modern technologies, detecting their activities has become very difficult. Every regulator and high-authority body encourages people to carefully examine the history of a broker before having business with them.