CFTC Charges two Louisiana Based Companies and Cofounder with Multi Million Dollar Forex Fraud, Failing to Register

WASHINGTON, D.C.- The Commodity Futures Trading Commission today announced a civil enforcement action in the U.S. District Court for the Eastern District of Louisiana against NOLA FX Capital Management, LLC, Meteor, LLC, Louisiana limited liability companies, and the founder of both, Michael B. DePetrillo.

The complaint alleges the defendants operated a commodity pool scheme in which they fraudulently solicited and accepted at least $7.6 million from at least 40 individuals, and misappropriated and commingled pool participant funds. Allegedly, NOLA FX Capital and Meteor acted as unregistered commodity pool operators, and DePetrillo acted as an unregistered associated person of a commodity pool operator.

The CFTC seeks restitution, disgorgement, civil monetary penalties, restitution, trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations, as charged.

Case Background

As alleged in the complaint, from approximately July 2017 to the present, the defendants fraudulently solicited pool participants by claiming their funds would be pooled and invested in NOLA FX Fund, LLC, and used to trade foreign currency pairs on a leveraged, margined, or financed basis ("retail forex"). In furtherance of this scheme, the defendants allegedly sent false account statements to pool participants showing purported profits and trading activity, when in fact none existed. Instead of trading as promised, the defendants misappropriated pool funds. The defendants used these misappropriated funds to make payments to existing pool participants in a manner akin to a Ponzi scheme, pay DePetrillo's personal expenses and to conduct personal trading in DePetrillo's personal trading accounts.

Meteor and/or NOLA FX Capital allegedly acted as a commodity pool operator by soliciting, accepting, and receiving funds to trade forex, but failed to register with the CFTC as such, and commingled pool participant funds with the property of others.

Related Criminal Action

The U.S. Attorney's Office, Eastern District of Louisiana, filed a separate criminal action against Michael B. DePetrillo [United States v. Depetrillo, No. 2:24-mj-00131-DM-1].

The Division of Enforcement staff members responsible for this case are Mike Loconte, Brendan Forbes, Eugenia Vroustouris, Erica Bodin, Stephanie Cooper, Aimée Latimer-Zayets and Rick Glaser.