Venture Capital Investments LLC, alongside its Manager and Principal, Breonna Clark, has been sentenced by the US court. Venture capital stands as a forex and crypto Ponzi scheme that has managed to misappropriate and solicit the funds of its clients.
A New Scheme Laid To Rest
Both the company and Clark, known as Alexander Pak and Elliot Clark, as well, have been officially held accountable for running a fraudulent scheme.
The US Commodity Futures Trading Commission was the entity that brought the charges against the two groups, having been aided by a number of foreign regulators. This includes regulators in St Vincent and the Grenadines, Bulgaria, the UK, Seychelles, as well as New Zealand.
72 Clients Falling Victim To Lofty Promises
On its Wednesday announcement, the fraudulently solicited funds of the perpetrators were detailed, having stolen it from 72 clients. As is typical with such schemes, the fraudsters had promised very high returns for an investor to put their funds into commodity pools, one claimed to be trading in cryptocurrencies and forex.
As is typical in these schemes, it was promoted through social media, claiming that these funds will be handed over to a “master team” of traders. From there, these funds will be traded, with consistently high returns promised.
As one would expect, however, these fund operators simply misappropriated the funding, dedicating it for personal use. Front here, the fund operators did all that was typical from operators of such scams: Buying a large amount of high-value goods, including a new luxury automobile. It can’t be a typical Ponzi scheme without the criminals buying a luxury vehicle.
The Punishment For The Crimes
In total, the perpetrators had managed to solicit and misappropriate some $450,302 in customer funds. As such, the Court has ordered said perpetrators to pay $450,302 in restitution for the defrauded clients, with a civil penalty of $450,302 layered on top of that. The Court further ruled that these perpetrators are mandated to cover the costs the CFTC has experienced in its investigations.
Alongside this, the perpetrators are from here on out effectively banned from registering with the CFTC, and consequently are banned from trading in any market regulated by the CFTC.
Even with the court order, the CFTC was quick to issue warnings to the victims of this scheme. Simply put, these scheme operators may simply not have the funding or assets needed to fully recover the lost money, let alone the fine.