Blue Guru Fined $2.5 Million
The Blue Guru Limited Liability Company has been penalized $2.5 million. This announcement came from the United States Commodity Futures Trading Commission, which noted they’d come to judgement earlier this week. An order demanding that the defendants pay an immediate $1.76 million for civil fines was met with an $838,642.00 disgorge on Ill-Gotten Gains. Blue Guru LLC acquired a permanent registration and trading ban from the CFTC. Once all penalty fines are paid, this financial institution will shutdown.
These penalties and fines came after Blue Guru was found operating a fraudulent scheme, which lasted for more than four years. Numerous charges were laid out by the CFTC, including False Representations of Profits. It’s estimated that executives with this exchange solicited $1.75 million from clients annually, leading them into a falsified scheme regarding high-frequency commodities. Traders were informed that commodity funds with be traded with the Straits Financial Firm. Instead, Fabricated statements were provided to clients. Throughout their operational period, more than $6.1 million was stolen. This prompted an influx of charges, with executives facing lengthy prison sentences.
When the CFTC first approached the Blue Guru firm, their immediate response was that investor funds weren’t held over $9,000.00. However, this went against direct advertisements sent to United States Investors. False claims regarding their operations continued to clients, as they were told that investments would receive 8% profits annually. This number magically jumped to 50% annual profits with client acquisition numbers dropped. The company concealed its actions with documents that were falsified or destroyed. It’s estimated that the clients that weren’t scammed still received a collective $250,000.00 in losses.
Their legal judgment follows after twenty-four months of court engagement, with the CFTC first receiving these complaints in January 2018. Executives with this exchange were subjected to a restitution fine of $7.0 million as well.