Page 32 - 期貨和衍生品行業(yè)監管動(dòng)態(tài)（2024年3月）
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期貨和衍生品行業(yè)監管動(dòng)態(tài)
in restitution and a civil monetary penalty in the same amount, totaling $64,356,794 in
fines. The order also permanently prohibits Empires Consulting from engaging in
further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as
charged.
Case Background
The order stems from the CFTC’s June 2022 complaint charging Empires
Consulting, along with its founders, Emerson Pires and Flavio Goncalves, and head
trader Joshua Nicholas with a scheme to defraud EmpiresX pool participants. The
complaint alleges, beginning in approximately September 2020, Empires Consulting
used the company’s website and videos posted on social media platforms to solicit
individuals (pool participants) to trade commodity futures, options, and digital assets
with EmpiresX. Pool participants had the alleged ability to participate either through a
“private investment” pool account directly managed by the company’s head trader or
through a pool account purportedly traded by an automated “EX Bot” that traded
based on the head trader’s trading.
The order finds Empires Consulting fraudulently obtained approximately $100
million from pool participants. According to the order, Empires Consulting, through
its officers and employees, knowingly made false claims to prospective pool
participants regarding its registration status, the use of participant funds, the size of
the pools, and participant returns. The order also finds Empires Consulting
commingled and misappropriated participant funds, and in or around November 2021,
stopped honoring participant withdrawal requests. The CFTC’s litigation against the
individual defendants continues.
Parallel Civil and Criminal Actions
On the same day the CFTC initiated its enforcement action, the U.S. Securities
and Exchange Commission (SEC) filed a parallel action against Empires Consulting,
Pires, Goncalves, and Nicholas for related conduct. The SEC resolved its claims
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