The United States Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges against Cody Ryan Porter and his company KatchPips FX LLC for misappropriating customer funds and for fraudulently solicitation.
The order requires Porter and KatchPips to pay a $187,240 civil monetary penalty and $187,240 in restitution to defrauded customers, along with any post-judgment interest. In addition, the order imposes a permanent ban on Porter and KatchPips FX from trading on or subject to the rules of any CFTC-registered entity, and from engaging in any activities requiring CFTC registration.
According to the order, from approximately October 2019 through May 2021, Porter and KatchPips FX fraudulently solicited and accepted funds from 18 customers to participate in forex commodity pool. Customers were told that the forex commodity pool would earn 3 percent to 10 percent each month and that the pool would be traded through a registered retail forex dealer.
Instead of placing customer funds into a forex commodity pool, Porter and KatchPips FX misappropriated the vast majority of customer funds for personal expenses such as food, rent and vacations. Despite operating a Forex commodity pool, neither Porter nor KatchPips FX was ever registered with the CFTC in any capacity. Customers suffered losses totaling over $187,000.
The regulator cautions victims that restitution orders may not always result in the recovery of money lost, because wrongdoers may not have sufficient funds or assets.