BULLETIN: Feds, CFTC File Stunning Allegations Of Multimillion-Dollar Fraud Against Purported Forex Trader Who Filed Bizarre Documents In NFA Disciplinary Case; Lyndon Lydell Parrilla Arrested In California

A California man who allegedly once defended himself in a disciplinary case by advising the National Futures Association that he was “a living breathing free Man upon the free soil” and an “American citizen of the American Republic” has been arrested by federal agents on charges of defrauding investors of $5 million in a Forex scheme.

Lyndon Lydell Parrilla, 31, of Los Angeles, was arrested yesterday. He also was sued by the CFTC, and the allegations surrounding his business practices are stunning.

NFA booted Parrilla in 2009 after bringing a disciplinary action against him and receiving nonresponsive answers to its complaint, according to records. Parrilla once was associated with a firm known as Parman Financial.

In response to the NFA  inquiry, Parrilla allegedly submitted documents styled “Public Notice, Declarations, and Lawful Protest and Private Pure Trust Act of State,” NFA said.

These, according to NFA records, were among his alleged assertions:

  • “Lyndon Lydell Parrilla is a living breathing free Man upon the free soil, an American citizen of the American Republic, beneficiary of the Original jurisdiction.”
  • “Lyndon Lydell Parrilla is not a United States Citizen, subject, vessel or ‘person’ as defined in Title 26 of the United States Code.”
  • “As beneficiary to the Original Jurisdiction, He is not subject to nor does HE volunteer to submit to or contract with any ens legis artificial or corporate jurisdiction to which a United States person may be subject.”

Federal prosecutors in Boston now say Parrilla was running a $5 million Forex scam in which he withdrew $2.1 million in cash from customers accounts, spent $950,000 at casinos and bought a car for $130,000. He was specifically charged with wire fraud. Elements of the case were assembled by the Interagency Financial Fraud Enforcement Task Force created by President Obama in November 2009.

The scam allegedly operated through a company known as Green Tree Capital, which used a website and addresses in California, Las Vegas, Boston and Canada, including the cities of Montreal London and Piedmont, according to court records.

For its part, the CFTC said Green Tree created bogus records of its trading prowess, including “a false 33-page track record from an account that claims Green Tree achieved gains of 1000% from January 19, 2009, through February 26, 2010.”

The company also used at least one dummy address in California, the CFTC charged.

“Green Tree misrepresents its location on its website,” the CFTC charged.  “The website claims that Green Tree’s main office in the United States is located at 9701 Wilshire Boulevard, 10th Floor, Beverly Hills, California, and lists a phone number for that office.

“However,” the CFTC continued, “the purported office address is fictitious, and Green Tree uses an answering service named Ruby Receptionists located in Portland, Oregon, to answer the phone number for its purported office in Beverly Hills.”

There even is doubt that Green Tree had an office in Boston, according to the CFTC.

A company known as FX High Summit (FXHS) is listed in the CFTC complaint as a “related entity,” but is not named a defendant.

FXHS “holds itself out as a forex trading firm and purportedly is located in Quebec, Canada and/or Ireland,” the CFTC said.

Discussions in online forums include complaints that FXHS also disappeared with money.

Law enforcement and regulators have been squaring off against bizarre pleadings in securities and commodities cases. Some individuals charged in cases have made bizarre claims they are “sovereign” beings answerable only to God.

There also have been bizarre claims that U.S. criminal and regulatory laws do not apply to accused criminals and fraudsters, even if the crimes or offenses occurred in the United States.

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2 Responses to “BULLETIN: Feds, CFTC File Stunning Allegations Of Multimillion-Dollar Fraud Against Purported Forex Trader Who Filed Bizarre Documents In NFA Disciplinary Case; Lyndon Lydell Parrilla Arrested In California”

  1. http://blogs.forbes.com/billsinger/2011/04/13/forex-parrilla-green-tree/

    The CFTC Complaint alleges that when soliciting customers, Green Tree and others made false representations regarding Green Tree’s profitability and track record. For example, it is asserted that fraudulent representations were made that Green Tree had

    returns of 150% to 300%;
    $30 million in customer assets;
    $75 million in assets;
    7-12 forex traders;
    not lost any customer money since its inception;
    annual returns of about 250%; and
    investedfor five-to-six years in FOREX with 100% annual returns, which prompted a customer retention rate of 90%.

    Doesn’t sound at all dodgy to me!

      (Quote)

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