CFTC Charges Fundsz and Individuals for Fraudulent Cryptocurrency and Precious Metals Solicitation
The Commodity Futures Trading Commission (CFTC) has filed a complaint against Rene Larralde, Juan Pablo Valcarce, Brian Early, Alisha Ann Kingrey, and their unincorporated entity, Fundsz, in the U.S. District Court for the Middle District of Florida. The complaint, announced on August 2, 2023, charges the defendants with fraudulent solicitation from clients to purportedly trade in cryptocurrencies and precious metals.
According to the complaint, from approximately October 2020 to the present, the defendants solicited participants with claims that Fundsz has historically produced over 3% returns per week using a «proprietary algorithm» for trading cryptocurrencies and precious metals. They described this as their «secret sauce» and claimed that a one-time $2,500 contribution to Fundsz could grow to $1 million within 48 months with no additional deposits.
Furthermore, the defendants pitched Fundsz as if it had a charitable purpose, using the tagline «Fundsz For Your Cause» and falsely implying that contributing to Fundsz would support various humanitarian efforts. However, the complaint alleges that Fundsz does not trade customer funds at all, and any customer gains are illusory, as the defendants simply make up fictional weekly returns to report to customers.
The CFTC's complaint was successful in obtaining an ex parte statutory restraining order, signed by U.S. District Court Judge Wendy Berger, which freezes the defendants' assets, preserves records, and appoints a temporary receiver. A hearing on the CFTC's motion for a preliminary injunction is scheduled for August 23, 2023.
As part of its ongoing legal actions, the CFTC is pursuing compensation for deceived investors, the return of unlawfully acquired profits,
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