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CFTC Secures Over $2 Million Restitution Order Against SimTradePro and Robert L. Adams Over Forex and Metals Fraud
The CFTC obtained a court order requiring Robert L. Adams and SimTradePro Incorporated to pay over $2 million in restitution for operating a fraudulent forex and precious metals commodity pool.
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The Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the District of Oregon has entered a consent order against Robert L. Adams and his company, SimTradePro Incorporated, for orchestrating a multimillion-dollar commodity pool fraud scheme.
Under the court order, the defendants are required to pay $2,072,986 in restitution to victimized investors. In addition to financial restitution, Adams and SimTradePro have been permanently banned from registering with the CFTC, trading in CFTC-regulated markets, and violating relevant provisions of the Commodity Exchange Act.
According to findings by the court, Adams and SimTradePro unlawfully operated as an unregistered commodity pool operator (CPO) and commodity trading advisor (CTA). Between them, they solicited and accepted more than $2.3 million from at least 100 investors, many of whom were allocating funds meant for retirement.
The defendants pooled customer funds to trade leveraged foreign currency exchange (forex) contracts as well as leveraged precious metals contracts, specifically gold and silver. Throughout the scheme, Adams and SimTradePro deceived participants regarding compensation and performance. They misrepresented their fee structures by falsely claiming they would only receive payment if the customers turned a profit, and they actively concealed substantial trading losses.
The regulatory resolution follows related criminal proceedings against Adams. In the parallel criminal case, United States v. Adams, he was sentenced to 2.5 years in prison and ordered to pay restitution for his role in the scheme.
The CFTC noted that international and domestic regulators assisted in the investigation, including the United Kingdom Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Central Bank of Ireland, and the Oregon Division of Financial Regulation. The CFTC also reminded investors that restitution orders may not guarantee the full recovery of lost funds if defendants lack sufficient assets.