The U.S. derivatives markets regulator, the Commodity Exchange Commission (CFTC), announced that Florida resident Avinash Singh and his company, Highrise Advantage, LLC, have been granted a default judgment by Judge Carlos E. Mendoza of the U.S. District Court for the Central District of Florida, granting a permanent injunction and monetary sanctions.
The ruling resolved a civil enforcement lawsuit filed by the CFTC on September 9, 2020, involving Singh, Highrise and eight other defendants in connection with an over-the-counter foreign exchange (Forex) program involving millions of dollars. The case against Highrise Advantage was amended on February 4, 2021, to add new facts about the extent of fraud and additional fraud allegations.
The ruling found that Singh had fraudulently raised and misappropriated funds through the overarching commodity pool Highrise and the four sub-commodity pools;Failure to register with the CFTC as required;and violated regulatory requirements regarding the operation of commodity pools.
The court's default judgment and permanent injunction ruled that Singh and Highrise were barred from engaging in conduct in violation of the Commodity Exchange Act (CEA) and CFTC regulations, and ordered them to pay $2,555$860,000 in compensation and $7,667$580,000 civil fine. The ruling also permanently bars Singh and Highrise from registering with the CFTC and from trading on any registered entity.
On July 5, 2023, the court ordered SR B Investment Enterprises, Inc., the operator of the four sub-commodity pools, Green Knight Investments, LLC, Bull Run Advantage, LLC and King Royalty, LLC and its operators, Surujpal Sahdeo, Daniel Colegero, Randy Rosseau and Hemraj Singh, respectively, made a unified determination. This ruling completely settles the lawsuit.
The verdict found that Highrise and Singh collected nearly $58 million from investors and sub-**, but used less than $2.5 million for actual foreign exchange transactions, embezzled more than $25 million, and used investor funds for Ponzi payments and personal expenses. The statements sent by the overall commodity pool to investors and sub-** falsely show a profit and no loss.
Singh was also indicted by U.S. attorneys for the Central District of Florida on February 17, 2021, facing 10 counts of wire fraud and six counts of money laundering. He failed to attend a scheduled hearing and remained on the run legally until his recent arrest in Florida on October 19, 2023, on an unexecuted warrant. Singh's criminal case is currently pending before Judge Mendoza and Judge Robert M. Norway.
The CFTC warns that an order requiring the return of funds to the victim may not mean that any lost funds can be recovered, as the offender may not have sufficient funds or assets. The CFTC will continue to aggressively fight to protect customers and ensure accountability for violators.
The CFTC would like to thank the U.S. Attorney for the Central District of Florida, the National Association, the Cyprus Exchange Commission, the Financial Conduct Authority of the United Kingdom, and the Australia** and Investment Commission for their assistance in this matter.
Warm reminder: Before doing foreign exchange trading, you must review the qualifications of the foreign exchange platform and the information on the official website to prevent being deceived.