A former resident of Miami, Florida, Darren Robinson, and his firm The QYU Holdings Inc. (QYUHI) have been ordered by a federal court to pay over $11 million for engaging in a fraudulent foreign currency (forex) scheme. Judge Linda V. Parker of the U.S. District Court for the Eastern District of Michigan issued an order of default judgment and a permanent injunction against Robinson and QYUHI.
The order bans Robinson and QYUHI from trading in any CFTC-regulated markets and registering with the CFTC. It also requires them to pay $5,923,515.37 in restitution to defrauded victims and a $5,923,515.37 civil monetary penalty. The fraudulent scheme involved misappropriating participants' funds for personal expenses, luxury purchases, and operating a Ponzi scheme.
Robinson, who is currently a fugitive from U.S. law enforcement with an active arrest warrant, faces charges of wire fraud and money laundering in a parallel criminal action in the Eastern District of Michigan. The CFTC warns that orders requiring repayment to victims may not result in the recovery of lost funds if wrongdoers lack sufficient assets.
The CFTC emphasizes its commitment to protecting customers and holding wrongdoers accountable. The Division of Enforcement staff involved in this case are Timothy J. Mulreany, George H. Malas, Kassra Goudarzi, and Paul G. Hayeck. The CFTC acknowledges the assistance of the U.S. Attorney's Office for the Eastern District of Michigan and the Federal Bureau of Investigation in this matter.
The CFTC has issued fraud advisories to educate the public on recognizing warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory. The public is urged to verify the registration of individuals or companies with the CFTC before committing funds to them. Suspicious activities or violations of commodity trading laws can be reported to the Division of Enforcement through various channels provided by the CFTC.
Whistleblowers reporting violations may be eligible to receive a percentage of monetary sanctions collected from violators, paid from the Customer Protection Fund.
