CFTC goes after fraudulent investment scheme Bluprint LLC
The United States Commodity Futures Trading Commission (CFTC) has taken action against fraudulent investment scheme Bluprint LLC and its director Rajiv Patel. The regulator has filed a complaint against the company and its CEO in the Florida Southern District Court.
The complaint, seen by FX News Group, alleges that, between at least June 2019 and continuing through the present, Patel and his company, Bluprint LLC, have engaged in a fraudulent scheme to solicit and misappropriate money invested with them for the purported purpose of trading commodity futures and securities in a commodity pool.
The defendants allegedly solicited and/or accepted at least $9.8 million from at least sixteen individuals and entities to trade commodity futures and securities in a commodity pool. Instead of using Pool Participant funds to trade on behalf of the Bluprint Pool, the defendants immediately misappropriated the funds.
The defendants misappropriated Pool Participant funds by directing or depositing the funds into Patel’s personal bank and trading accounts. Patel used Pool Participant funds to support his lifestyle, including by making mortgage payments for two homes in Palm Beach County, Florida; making loan payments on several vehicles; and by making regular payments to credit card providers and personal loan financers.
Patel also used Pool Participant funds to personally trade, among other things, commodity futures and options. Patel’s trading has been overall unprofitable and caused significant losses of Pool Participant funds. Meanwhile, Patel reported to Pool Participants that their investments were earning interest, when in reality, as of November 21, 2021, the investments were depleted and earning no interest.
The CFTC alleges that the defendants have violated certain anti-fraud, commodity pool registration, and related provisions of the Commodity Exchange Act (“Act” or “CEA”), 7 U.S.C. §§ 1-26, namely, Sections 4b(a)(1)(A)-(C), 4c(b), 4k(2), 4m(1), 4o(1)(A)-(B) of the Act, 7 U.S.C. §§ 6b(a)(1)(A)-(C), 6c(b), 6k(2), 6m(1), 6o(1)(A)-(B), and CFTC Regulations (“Regulations”) 4.20(a)(1), (b), and (c), 4.21, 4.22, and 32.4, 17 C.F.R. §§ 4.20(a)(1), (b), and (c), 4.21, 4.22, 32.4 (2021).
The CFTC seeks civil monetary penalties and remedial ancillary relief, including but not limited to, trading and registration bans, restitution, disgorgement from defendants, rescission, as well as pre- and post-judgment interest.