The Commodity Futures Trading Commission (CFTC) has sued Trevor L. Vernon and his firm, Argent Capital Management, over an alleged $14 million fraud involving a commodity pool that traded stock index futures, options, and crypto assets.

The agency filed its complaint in the US District Court for the Western District of North Carolina. It accuses the two defendants of hiding heavy losses while telling investors their money kept growing.

Inside the Alleged Crypto Fraud Scheme

The complaint covers conduct from at least March 2022 through February 2026. Across that span, the defendants raised money from at least 60 participants, according to the filing.

Vernon marketed himself as a skilled trader and claimed the pool was highly profitable. In reality, his trades resulted in steady and substantial losses, the CFTC alleges.

The defendants sent monthly emails and quarterly updates that showed rising account balances. Those gains never existed, the agency says.

Vernon also reportedly misappropriated pool money. He allegedly paid earlier investors with funds from new ones, a hallmark of a Ponzi scheme.

The filing further cites several registration violations under the Commodity Exchange Act (CEA).

“In addition, the complaint alleges Vernon knowingly made false statements during sworn testimony taken as part of the Commission’s investigation,” the CFTC said.

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The CFTC wants restitution, disgorgement, civil penalties, and permanent trading and registration bans. It also seeks a court order stopping Vernon from further violations.

The case fits a broader CFTC push against retail fraud. In March, enforcement director David Miller named Ponzi schemes and commodity pool fraud among the agency’s top priorities.

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Источник: BeInCrypto