The Commodity Futures Trading Commission announced that the U.S. District Court for the Southern District of Florida entered a consent order against John Fortini for retail fraud, fraud as an associated person of a commodity pool operator, and related regulatory violations. The order requires disgorgement of USD 1,347,867.56 and imposes a permanent injunction from further violations of the Commodity Exchange Act and Commission regulations, along with permanent trading and registration bans. The court found that, while serving as an executive at Algo Capital LLC, Fortini misappropriated customer funds and made misrepresentations and omissions to customers and prospective customers. The order describes false assurances that customers could withdraw funds despite withdrawal requests not being honored in fall 2022, misleading statements about the use of a proprietary trading algorithm, and an arrangement for Traders Domain FX Ltd. to trade customer funds beginning no later than October 2021; it also found Fortini ignored red flags about Traders Domain’s purported fraudulent activity and did not disclose Traders Domain’s inclusion on the CFTC’s Registration Deficient List. The consent order resolves all claims against Fortini in the CFTC’s 30 September 2024 enforcement action, while the case against remaining defendants continues. The CFTC noted that disgorgement orders may not result in victims recovering losses if defendants lack sufficient funds or assets.

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