CFTC secures entry of default against unregistered FX firm Welther Oaks
The United States Commodity Futures Trading Commission (CFTC) has secured entries of default against unregistered Forex firm Welther Oaks, LLC and its owner Ali Bazzi.
This becomes clear from documents recently filed in the Michigan Eastern District Court and seen by FX News Group.
Let’s recall that, in August 2021, the CFTC filed a civil enforcement action against Ali Bazzi and his company Welther Oaks, LLC, both of Michigan, charging them with fraud and misappropriation in connection with their operation of a Forex commodity pool.
According to the complaint, starting in at least March 2018, Bazzi, the owner of Welther Oaks, fraudulently solicited at least $470,000 from at least 25 pool participants for a commodity pool that would purportedly trade forex.
As alleged, in order to entice pool participants, Bazzi and Welther Oaks falsely represented that they had made large profits trading forex; and that pool participants would realize guaranteed profits as high as 15% per month on their funds without losses, and could withdraw their funds at any time.
The complaint further alleges that Bazzi and Welther Oaks used only a small fraction of the funds they collected to trade forex and concealed their fraud by issuing false account statements to the pool participants that purported to show trading profits. In addition, the complaint alleges that defendants misappropriated at least $387,000 of participants’ funds to spend on automobiles, jewelry, retail purchases, meals and entertainment and travel for Bazzi.
The Court has granted the CFTC’s motion for entries of default against the defendants due to the defendants’ failure to respond to the Complaint. The Commission says that its counsel is presently preparing a Request for Default Judgment which will be submitted after the CFTC determines the sums for disgorgement and restitution.