Commodity Futures Trading Commission (CFTC) has taken legal action against Wonsey
of Riverview, Florida. He has been accused of fraud and misappropriation
related to a trading scheme involving leveraged retail foreign currency (forex)
and binary options.
Five Years of Fraud: The Timeline
of Wonsey's Alleged Activities
complaint alleges that Wonsey solicited over $3.4 million from at least 50
individuals. It is marked as a significant case in the world of commodity
trading and investments.
CFTC's complaint, filed in the U.S. District Court for the Middle District of
Florida, outlines a series of alleged wrongdoings by Wonsey. The regulatory
body is seeking a range of penalties. It includes disgorgement of ill-gotten
gains, civil monetary penalties, restitution to victims, permanent registration
and trading bans, and a permanent injunction to prevent further violations of
the Commodity Exchange Act (CEA).
alleged fraudulent activities spanned approximately from January 2017 through
September 2022. Wonsey solicited and pooled funds from investors for purported
trading in retail forex, binary options, metals, and digital assets.
Ponzi Scheme: How Wonsey Misused Investor Funds
entice investors, he is accused of making false claims about his past trading
success, the likelihood of future profitability, the frequency of payouts, and
the low level of risk associated with his trading operations.
instead of utilizing the pooled funds for trading as promised, Wonsey allegedly
misappropriated the funds for his personal gain. He made payments to other pool
participants, resembling a Ponzi scheme.
investors wanted to withdraw their funds, Wonsey reportedly failed to comply
with their requests. He either ignored their pleas, provided misleading
excuses, or engaged in actions designed to delay payouts for as long as
complaint also notes that Patrick Wonsey was not registered as a commodity pool
operator. He neglected to establish the pool as required by law. He mixed pool
participant funds with his own assets and violated regulatory norms.
CFTC is taking this case seriously,
with its Division of Enforcement staff spearheading the effort. Kelly Folks,
Sean Hennessey, Kevin Samuel, Alison B. Wilson, Erica Bodin, and Rick Glaser
are responsible for the investigation and legal proceedings.
enforcement action reminds of the CFTC's commitment to safeguarding the
integrity of financial markets and protecting investors from fraudulent
schemes. The agency is actively pursuing justice on behalf of those affected by
this alleged misconduct.
This article was written by Tareq Sikder at www.financemagnates.com.