CFTC v. 4X Solutions, Inc. and Whileon Chay, Case No. 13-CIV-2287 (S.D.N.Y.). On April 8, 2013, the CFTC announced it filed fraud charges against 4X Solutions, Inc. and its principal, Whileon Chay. The CFTC alleges that Chay and 4X raised $4.8 million from investors by falsely claiming potential returns of 24 percent to 36 percent per year. Defendants also claimed that they had not suffered a single losing month in 14 years. In reality, Chay lost $2 million trading forex and misappropriated $2.8 million to fund 4X’s operations and make Ponzi payments to investors. He also used the money to pay for resorts, restaurants, and limousine service, among other things. The CFTC also alleges that Chay hid his trading losses and theft by giving out false monthly account statements. The CFTC seeks restitution, disgorgement, civil monetary penalties, trading and registration bans, and injunctive relief.
- SEC Charges Microsoft Manager Brian Jorgenson and his Friend Sean Stokke with Insider Trading
- SEC Obtains Emergency Relief against Robert Helms and Janniece Kaelin in Alleged Ponzi Scheme
- SEC Charges Fifth Third Bancorp and its Former CFO Daniel Poston with Fraud for Accounting Practices during the Financial Crisis
- SEC Settles Insider Trading Case against Charles Langston III
- SEC Settles Penny Stock Case Against Curt Kramer for $1.4 Million
Other BraunHagey Blogs