CFTC: CFTC Charges Cash FX Group S.A., and CEO; Three Others With $950 Million Fraud Scheme

• CFTC claims Cash FX’s participants lost at least $406 million, as stated by CFTC on September 25, 2026.
• The complaint seeks permanent injunctions and civil monetary penalties, per CFTC on September 25, 2026.

The CFTC filed a complaint in the U.S. District Court for the Middle District of Florida against Cash FX Group S.A., its CEO Huascar Jose Lopez Castillo, The Conversion Pros, Inc., its CEO Ronald Pope, and Justin Halladay. The complaint alleges they operated a multilevel marketing Ponzi scheme, fraudulently soliciting and accepting over $950 million from the public for supposed forex trading.

According to the CFTC, the defendants misappropriated nearly all participant funds, provided false account statements, and paid millions to themselves. Cash FX’s participants lost at least $406 million. The CFTC seeks restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction against further violations.

• $950 million fraudulently solicited and accepted from the public
• 15% weekly promised returns on trading
• $406 million losses suffered by Cash FX’s participants

• Review exposure to Cash FX Group S.A. and The Conversion Pros, Inc. for client or counterparty relationships.
• Scrutinize any client claims of up to 15% weekly returns from forex trading pools for signs of Ponzi typologies.
• Check for false account statements and misappropriation patterns matching those described in the CFTC complaint filed in the U.S. District Court for the Middle District of Florida.

This case highlights the risks of fraudulent schemes using multilevel marketing and false claims of high returns in forex trading pools. Compliance officers must be vigilant for similar typologies, including misappropriation of funds, false account statements, and promises of unrealistic returns. The CFTC’s action underscores the importance of monitoring for violations of the Commodity Exchange Act and CFTC regulations, and the need to identify and report suspicious activity to protect clients and institutions from significant losses.