CFTC secures entry of default against Forex Ponzi scheme 1st Million
The United States Commodity Futures Trading Commission (CFTC) has marked progress in its action against Forex scam 1st Million LLC, as the Court has granted entries of default against the fraudulent firm and the individuals behind it.
According to documents recently filed with the Maryland District Court and seen by FX News Group, the clerk of Court has issued entries of default as to 1st Million LLC, Access to Assets LLC, John Frimpong, Arley Ray Johnson, and Smart Partners LLC.
This step is usually followed by the issuance of default judgments against the defendants. These judgments are set to include specifications regarding monetary penalties and any compensation to victims.
Let’s recall that this case was filed by the CFTC in August 2020. It charges Dennis Jali, a South African citizen who previously resided in Maryland, with orchestrating a $28 million Ponzi scheme. The complaint also charges Arley Ray Johnson and John Frimpong of Maryland with fraudulently soliciting funds from members of the public for the “1st Million Pool” through and on behalf of 1st Million LLC, Smart Partners LLC, and Access to Assets LLC.
The complaint alleges that the defendants fraudulently solicited participants to trade in Forex and digital assets such as bitcoin through pooled trading accounts controlled by Jali.
According to the complaint, from 2017 to 2020, over 1000 participants contributed at least $28 million to the 1st Million Pool, often pursuant to so-called “secure contracts” that falsely promised participants’ funds would be held in trust or escrow, used to trade Forex and bitcoin, and then returned in their entirety at the end of the pool participation term. The complaint alleges that the defendants misappropriated at least $7 million of 1st Million Pool funds and used it to pay for expensive cars, personal travel, and living and business expenses.
In its continuing litigation, the CFTC seeks full restitution to defrauded pool participants, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against violations of the federal commodities laws, as charged.