A U.S. financial regulator charged three foreign exchange trading businesses and five executives with operating a $75 million scheme that used investor funds for fraudulent payments and the purchase of private-plane charters, exotic vacations and other big-ticket items, the Wall Street Journal reported. Michael DaCorta, Joseph Anile II, Raymond Montie III, Francisco Duran and John Haas allegedly operated a fraudulent foreign-currency trading business that affected more than 700 U.S. residents, according to the Commodity Futures Trading Commission. The agency also named Oasis International Group Ltd., Oasis Management LLC and Satellite Holdings Co. in its complaint. According to the CFTC, the five men raised funds from individual investors for two commodity pools. The men falsely told investors they would receive a guaranteed annual return of 12 percent from the pooled investments with no risk involved, the agency said. Beginning in April 2014, the men deposited roughly one-third of the $75 million in the trading accounts for the two investment pools, and subsequently lost those funds in trading, the CFTC said. Additionally, nearly $50 million was used to make “Ponzi-like” payments to several participants in the pools, as well as unauthorized purchases for goods such as Florida real estate and sports tickets, the agency said. A hearing on the case has been set for April 29 in Tampa, Fla.
