CFTC Bans 8 Salesmen Who Pushed Risky Offshore Currency Bets On Americans
The CFTC, America’s futures market regulator, banned eight people for two years after they signed up ordinary US customers for risky, borrowed-money currency and commodity bets on behalf of unregistered offshore brokers.
Key Takeaways
- The CFTC filed and settled charges against eight people on Nov. 9 in eight separate orders
- They acted for foreign introducing brokers that sold leveraged forex and commodity trades to US retail customers without registering
- All eight must stop and are barred for two years from registering with the CFTC or working for any CFTC-registered firm
- The SEC charged the same eight over the same conduct, and each faces an SEC penalty
The CFTC named them as Michael Talento, Anthony Tyler Williams, Quillan Roberto Black, Christopher Williams, Michael Levi Peters, Jordan Taylor Morgan, Lewis Matthew Neal and Tyler Evan MacKechnie.
What They Did
According to the orders, the brokers sold off-exchange forex and commodity trades using leverage, meaning customers could bet with borrowed money and lose far more than they put in. US law only lets everyday investors trade these products through registered firms, and the people who bring in customers must register too.
The eight never registered as associated persons of the brokers, which were not registered either. The customers they solicited were ordinary retail traders, not the large, wealthy investors the law treats as able to handle such risks.
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The Offshore Firms Behind It
The CFTC said the orders tie back to an earlier case against Netrios LP Ltd. and Red Acre Ltd., which it sanctioned for helping run illegal off-exchange commodity trades with US customers.
The SEC brought its own settled cases against the eight. In its order against Talento, the SEC said he co-owned Prosperity, an unregistered online broker incorporated in St. Vincent and the Grenadines, where customers deposited about $35 million between 2020 and 2023. Prosperity offered contracts for difference on stocks, currencies, crypto assets, indexes and commodities. Talento agreed to pay a $65,000 penalty and was barred from the securities industry, with the right to reapply after two years.
| What The Eight Face | Details |
|---|---|
| CFTC order | Cease and desist from the illegal conduct |
| CFTC ban | 2 years barred from registering or working for any CFTC registrant |
| SEC case | Separate settled charges and a penalty for each person |
Why It Matters For Traders
Offshore brokers often use local salespeople and referral agents to reach US customers while the trading platform itself sits abroad. The CFTC is making clear that those salespeople can be punished personally, even when the broker is based overseas.
For retail traders, the message is simple. Before betting on currencies, commodities or crypto with borrowed money, check that the firm and the person selling it are registered, which anyone can do through the National Futures Association’s free BASIC search.
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