Now, A ‘Fraudulent $53 Million Worldwide Off-Exchange Forex Scheme,’ CFTC Alleges; Agency Charges Australian Resident Senen Pousa, U.S. Residents Joel Friant And Michael Dillard, Along With ‘Investment Intelligence Corp.’ And ‘Elevation Group Inc.’

EDITOR’S NOTE: In a statement on the allegations against Senen Pousa, Joel Friant, Michael Dillard and their companies, the CFTC pointedly stressed that international agencies cooperated in a probe and that the alleged scammers created victims in multiple nations . . .

The CFTC has gone to federal court in the Western District of Texas, alleging that Senen Pousa of Australia and Joel Friant of Bellingham, Wash., were running a “fraudulent $53 million worldwide off-exchange Forex scheme” through an Australian enterprise known as Investment Intelligence Corp. (IIC).

Also charged in the alleged caper were Michael Dillard and Elevation Group Inc. of Austin, Texas.

“The scheme allegedly accepted at least $53 million from at least 960 clients worldwide, including at least 697 clients in the United States, and clients in Australia, the United Kingdom, Canada, Germany, the Netherlands, and Singapore, among other countries. None of the defendants has ever been registered with the CFTC,” the CFTC charged.

U.S. District Judge Lee Yeakel of the Western District of Texas issued an emergency freeze of the assets of Pousa, Friant and IIC and prohibited the destruction of books and records, the CFTC said.

Cooperating in the probe were the Australian Securities & Investments Commission, the U.K. Financial Services Authority, the Hungarian Financial Supervisory Authority, the Netherlands Authority for the Financial Markets, the Financial Markets Authority of New Zealand and the New Zealand Serious Fraud Office, the CFTC said.

From a CFTC statement (italics added):

The CFTC complaint alleges that from at least January 1, 2012 through the present IIC, through Pousa, Friant and its other agents, and defendants Dillard and Elevation Group, utilized “wealth creation” webcasts, webinars, podcasts, emails, and other online seminars via the Internet to directly and indirectly solicit actual and prospective clients worldwide to open forex trading accounts at IIC. The complaint further alleges that clients were promised by IIC, through Pousa, Friant, and other agents 1) a monthly return of 9 percent, 2) that IIC’s managed forex trading would risk less than 3 percent of a client’s capital per transaction, 3) that IIC was able to limit the risk inherent to forex trading by limiting its managed forex trading to 2 to 5 trades per month, and 4) that IIC has six “proprietary traders” working 24 hours a day trading clients’ funds. The CFTC complaint alleges that all of these representations to clients were false.

On or about May 16-17, 2012, the complaint alleges that clients suffered a loss of over 60 percent of their investment, when IIC, by and through its agents, entered over 200 forex trades in each client’s account in violation of the representations made by IIC, by and through its agents.

Also assisting the CFTC were the Texas State Securities Board, the Washington State Department of Financial Institutions, the U.S. Attorney for the Western District of Texas, the FBI and the SEC, the CFTC said.

Read the CFTC complaint.

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6 Responses to “Now, A ‘Fraudulent $53 Million Worldwide Off-Exchange Forex Scheme,’ CFTC Alleges; Agency Charges Australian Resident Senen Pousa, U.S. Residents Joel Friant And Michael Dillard, Along With ‘Investment Intelligence Corp.’ And ‘Elevation Group Inc.’”

  1. Interesting response from Mike Dillard at The Elevation Group.

    http://theelevationgroup.com/prophetmax-fraud-case/

    He’s always seemed like one of the good guys in network marketing so glad to see his response and how he’s dealing with these issues.

    ARWR

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  2. ARWR: Interesting response from Mike Dillard at The Elevation Group.

    From the link provided:

    As you have heard me say before, in 2007, I became passionate about money, investing, and the economy thanks to the incredible information put forth by visionaries like Robert Kiyosaki, Michael Maloney, Peter Schiff, James Turk, Kyle Bass, Max Keiser, and many others…

    I’ve seen the name “Robert Kiyosaki” being proclaimed as a visionary before by ponzi/MLM punters. The best analysis of this fruit-cake is probably here:
    http://www.johntreed.com/Kiyosaki.html

    I’ve also seen the name “James Turk” used by people who were ponzi friendly, ponzi enablers, or who were a small step from the sovereign citizen cause.

    If someone calls people like Robert Kiyosaki or James Turk a “visionary”, I would not classify them as “one of the good guys”.

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  3. If someone calls people like Robert Kiyosaki or James Turk a “visionary”, I would not classify them as “one of the good guys”.

    Completely agree. Also have very hard time believing that anybody in MLM industry is a “good guy”. MLM is legal but horrible corrupt business concept. You may come to MLM as a “good guy”, but you will never be successful there while staying “good”.

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  4. Michael Maloney also should not to be called visionary. His business smells of scam.

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  5. Not surprisingly, Mike Dillard has attempted to spin the outcome of the court proceedings http://theelevationgroup.com/prophetmax-fraud-case/ to paint both he and The Elevation Group in a positive light, despite the CFTC pointing out in no uncertain terms it considers both Dillard and Elevation Group Inc worthy of special mention:

    Further, on September 18, 2012, the court entered a consent order of permanent injunction and ancillary equitable relief against defendants Michael Dillard and Elevation Group, Inc. According to the consent order, the court found that Elevation Group acted as an Introducing Broker and solicited orders from non-ECPs in connection with leveraged forex transactions without registering with the CFTC. The court further found that Dillard acted as an unregistered Associated Person of the Elevation Group, according to the order.

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  6. What I found interesting is that Mike Dillard said he didn’t know he had to be registered, but says he had an SEC Attorney. If so, then he had to know or his SEC attorney is incompetent. Talk about trying to blow smoke up everyone’s skirts. Massive CYA attempt, but failed.

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