CFTC Settles Forex Fraud Action Against Luis Salazar-Correa For $2.6 Million

In the Matter of Prosperity Team, LLC and Luis Salazar-Correa, CFTC Docket No. 12-23.  On June 6, 2012, the CFTC ordered Luis Salazar-Correa and his Nevada-based company, Prosperity Team, LLC, to pay more than $2.6 million in a settled administrative proceeding.  From February 2009, through June 2012, Salazar-Correa and Prosperity Team fraudulently solicited and accepted $2,482,000 from approximately 183 customers to trade leveraged or margined off-exchange foreign currency (“forex”) contracts through a pooled investment vehicle, also known as Prosperity Team.  Salazar-Correa promised monthly returns ranging from 10-25% and misrepresented the risks of forex trading.  Rather than generating the promised returns, there were losses of more than $1.5 million.  Salazar-Correa also ran a Ponzi scheme by taking customers’ funds to make payments to other customers.  He then concealed his misconduct by creating false account statements that were accessible to customers online through Prosperity Team’s website.  Without admitting or denying the allegations, Salazar-Correa and Prosperity Team consented to a CFTC order requiring them to cease and desist from violating the anti-fraud provisions of the Commodity Exchange Act, to pay $1,641,00 in restitution, and to pay a civil monetary penalty of $1 million.  The order also bans them from trading commodities and appoints the National Futures Association as a monitor to assure compliance with the restitution order and oversee the distribution of funds to the victims.

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