On June 23, the U.S. Commodity Futures Trading Commission (CFTC) obtained a final order resolving their charges against Dominick Vincent Carducci and his company VOS Capital Management, LLC (VOS Capital). The CFTC charged Carducci and VOS Capital with fraud and misappropriation in relation to the unlawful operation of a commodity pool. The court order rules that Carducci and VOS Capital shall pay, jointly and severally, restitution of $953,875 and a civil monetary penalty in the amount of $2,861,625.
According to the CFTC, starting in at least August 2016, Carducci and VOS Capital fraudulently solicited and misappropriated money from at least 30 individuals for pooled investments in retail foreign exchange trading (retail forex). Carducci and VOS Capital allegedly received at least $1.1 million from pool participants for investment in commodity pools that would trade forex. However, the CFTC alleged that Carducci and VOS Capital never traded forex on behalf of pool participants. Instead, the funds were allegedly used for Carducci’s personal use, such as international travel and luxury automobiles. The court order granted the CFTC’s motion for entry of default judgment because the defendants did not answer the summons or appear in court. Because of the default, the CFTC’s allegations are deemed to have been admitted by the defendants.
On August 6, the CFTC Whistleblower Program posted a Notice of Covered Action in reference to the case. The Notice signals that eligible individuals should now file a whistleblower award claim for the case. CFTC whistleblowers who voluntarily provide the Commission with original information that leads to the successful enforcement of a Covered Action are eligible to claim a whistleblower award. The monetary amount of CFTC whistleblower awards ranges from 10 to 30 percent of all funds recovered by the government in the case.
The CFTC Press Release on the Case: CFTC Charges Unregistered Forex Trading Firm and Its Principal with Fraud and Misappropriation
The Notice of Covered Action: https://www.whistleblower.gov/notices/2020-011