CFTC Obtains $9.2 Million Forex Fraud Judgment and Trading Bans

The Commodity Futures Trading Commission said a US District Court for the Eastern District of Louisiana entered a default judgment against Michael B. DePetrillo, Meteor LLC and NOLA FX Capital Management LLC in a retail-forex fraud case. The October 21 release says the court found the defendants solicited and misappropriated more than $3 million from participants.

According to the CFTC, the defendants said participant money would be used to trade retail forex, made material misrepresentations or omissions about the profitability of the trading, and issued false account statements to conceal misconduct. The court ordered a $9,211,492 civil monetary penalty, permanently enjoined further violations of the Commodity Exchange Act and CFTC regulations, and imposed permanent trading and registration bans.

The judgment resolves the claims in the CFTC’s 2024 complaint. It is an enforcement outcome, not a finding about a regulated broker or a change to retail-forex trading rules. But it provides a current reminder of the red flags the regulator alleged: promises about forex performance, unclear use of customer funds and account reporting that cannot be independently verified.

Why it matters

Retail traders considering managed forex arrangements should verify the firm’s registration and avoid relying solely on provider-issued performance reports. A court judgment and permanent bans can stop the named parties, but they do not replace basic due diligence before sending funds or granting trading authority.

What to watch next

Watch the CFTC’s enforcement releases and registration databases for related actions or alerts. Traders who encounter similar claims can check the CFTC source material and seek independent confirmation of a firm’s regulatory status before depositing funds.