The US CFTC has accused Breonna Clark and his firm Venture Capital Investments Ltd and The Life Group for raising and $534,829 from 72 investors. The trading commission further alleged that $400,000 of the raised funds went to personal use, including the purchase of a BMW car.
CFTC is charging alleged scammer on several counts.
The US CFTC is charging Breonna Clark with fraud by a commodity pool operator, fraud by deceptive practice, failure to register as a commodity pool operator, and failure to register as a commodity operator. According to the CFTC, Breonna released false account statements to mislead investors and used some of the raised funds to pay off other investors. Only a small of the funds were used for trading on the pool’s behalf.
Clark failed to return any of the funds raised through the alleged scheme.
According to the CFTC complaint, several pool participants, at various times during the relevant period, requested to withdraw funds from their accounts. To some of those requests, Clark did not respond, and in other instances, the alleged scammer responded with false excuses. One of the false excuse that he made to pool participants was that CFTC was conducting an audit, but CFTC confirmed that they did not conduct any.