CFTC Obtains Over $31 Million Judgment Against Abner Tinoco and Kikit & Mess Investments in Multi-Million Forex and Crypto Ponzi Scheme

The Commodity Futures Trading Commission (CFTC) has announced that a federal court has entered an order requiring Abner Alejandro Tinoco and his firm, Kikit & Mess Investments, LLC, to pay more than $31 million in restitution, disgorgement, and civil penalties. The judgment resolves CFTC enforcement actions regarding a fraudulent foreign exchange (forex) and cryptocurrency scheme that targeted nearly 200 investors. According to the court order issued by Senior Judge David C. Guaderrama of the U.S. District Court for the Western District of Texas, Tinoco and his El Paso-based firm must pay $6,203,792.18 in restitution to 199 defrauded victims, $6,257,904.89 in disgorgement, and a civil monetary penalty of $18,773,714—an amount three times their unlawful gains. The findings show that starting in September 2020, Tinoco and Kikit & Mess Investments solicited and accepted more than $7.2 million from clients under the pretense of investing in forex and crypto assets. Instead of trading as promised, the defendants ran a Ponzi-style operation, using funds from newer participants to pay fabricated 'investment profits' to existing clients. Rather than executing genuine trades, Tinoco diverted millions of investor funds to support an opulent personal lifestyle. The misappropriated money funded charter flights on private jets, the acquisition of a luxury mansion and real estate, and the purchase or lease of high-end vehicles. This final monetary order follows a March 2022 consent order of permanent injunction that banned Tinoco and his company from registering with the CFTC and permanently barred them from trading in CFTC-regulated markets. In a parallel criminal case prosecuted by the Department of Justice, Tinoco pleaded guilty to five counts of wire fraud. He was sentenced to 84 months in federal prison followed by three years of supervised release and was ordered to pay over $9 million in criminal restitution. He is currently serving his sentence at the Federal Correctional Institution in Safford, Arizona. Regulatory authorities remind investors to always verify registration credentials before transferring funds to any trading firm or individual. Verifying credentials through tools like the National Futures Association's BASIC database can help traders identify unregistered entities and avoid fraudulent investment schemes.