CFTC: CFTC Secures Court Order Directing Louisiana Man and Arkansas Woman to Pay Over $31 Million for Digital Assets, Precious Metals Fraud

• CFTC states consent orders require Rachel Larralde’s estate to relinquish more than $2.7 million in assets and ownership rights in a personal residence.
• CFTC confirms the default judgment and consent orders resolve all remaining claims in the CFTC’s action, as noted in Press Release No. 8766-23.

The U.S. District Court for the Middle District of Florida entered a default judgment against Brian Early and Alisha Ann Kingrey for their roles in a digital assets and precious metals fraud involving Fundsz. The court found they made material misrepresentations about Fundsz’s profits, risk, and trading performance, and falsely claimed funds would be traded by a proprietary algorithm and could be withdrawn in 180 days with interest.

Consent orders were also entered against Rachel Larralde’s estate and Juan Pablo Valcarce for deceiving participants and misappropriating funds. Larralde’s estate must relinquish ownership rights in a personal residence and more than $2.7 million in assets. Both Early and Kingrey, as well as Valcarce, are permanently banned from registration and trading under the Commodity Exchange Act and CFTC regulations.

• $15,732,455 Restitution ordered for Early and Kingrey
• $15,752,455 Civil monetary penalty for Early and Kingrey
• $2.7 million Assets relinquished by Larralde’s estate

• Review Fundsz entity and its website for material misrepresentations and omissions as described in CFTC Press Release No. 8766-23.
• Screen for proprietary algorithm claims and withdrawal promises of 180 days with interest in digital asset and precious metals offerings.
• Check for permanent registration and trading bans imposed by the U.S. District Court for the Middle District of Florida on Early, Kingrey, and Valcarce.

This case highlights the importance of scrutinizing claims made by digital asset and precious metals platforms, especially regarding expected profits, risk disclosures, and withdrawal terms. The court’s findings and penalties underscore the risks of misrepresentation and misappropriation, and the need for compliance officers to monitor for similar schemes. Permanent bans and asset forfeitures serve as a warning to those who might facilitate or overlook fraudulent activity, reinforcing the necessity for robust AML/CFT controls and due diligence.