CFTC charges R2 Capital Group LLC with Fraud and Misappropriation 

The U.S. Commodity Futures Trading Commission (CFTC) announced that on August 15, 2014, Chief Judge Marcia S. Krieger, of the U.S. District Court for the District of Colorado, issued a restraining Order freezing the assets of Defendants Ryan Tomazin of Stamford, Connecticut, Ryan Madigan of Raleigh, North Carolina, and Randell A. Vest of Fort Myers, Florida. The restraining Order was a follow up of the court’s August 7, 2014 restraining Order, which froze the assets of Tomazin’s, Madigan’s and Vest’s holding companies — Defendants RAST Investor Group, LLC, Madigan Enterprises, Inc., and Bulletproof Vest, Inc., respectively — and their Colorado company, Defendant R2 Capital Group LLC (R2 Capital). The restraining Orders also prohibit the Defendants from destroying or altering books and records.

The two restraining Orders arise from a CFTC federal court enforcement action filed on August 6, 2014, charging the Defendants with futures and foreign currency (forex) fraud, and misappropriation. The CFTC Complaint also charges the Defendants with illegally commingling funds received from pool participants with others’ funds by, among other things, transferring pool participant funds directly into the personal bank accounts of Tomazin, Madigan, Vest, their respective holding companies, and R2 Capital.

According to the complaint, the Defendants falsely and fraudulently concealed from at least two pool participants that 1) Defendants had closed the forex account, 2) that Pool Participants’ funds had been transferred to a new account at a different Futures Commission Merchant, 3) that the Commercial Pool was no longer trading forex, and 4) that the Commercial Pool was now trading E-mini S&P 500 futures and securities products.

The Defendants allegedly misappropriated more than $1.2 million of pool funds by routinely illegally diverting substantial sums from the R2 Capital and Commercial Pool bank accounts to themselves and their Defendant holding companies until all but a few hundred dollars of the pool participant funds were dissipated.

The CFTC concluded by thanking the National Futures Association for the assistance in the case.

 

Source: cftc 

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