Page 32 - 期货和衍生品行业监管动态（2024年3月）

期货和衍生品行业监管动态

in restitution and a civil monetary penalty in the same amount, totaling $64,356,794 in

fines. The order also permanently prohibits Empires Consulting from engaging in

further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as

charged.

Case Background

The order stems from the CFTC’s June 2022 complaint charging Empires

Consulting, along with its founders, Emerson Pires and Flavio Goncalves, and head

trader Joshua Nicholas with a scheme to defraud EmpiresX pool participants. The

complaint alleges, beginning in approximately September 2020, Empires Consulting

used the company’s website and videos posted on social media platforms to solicit

individuals (pool participants) to trade commodity futures, options, and digital assets

with EmpiresX. Pool participants had the alleged ability to participate either through a

“private investment” pool account directly managed by the company’s head trader or

through a pool account purportedly traded by an automated “EX Bot” that traded

based on the head trader’s trading.

The order finds Empires Consulting fraudulently obtained approximately $100

million from pool participants. According to the order, Empires Consulting, through
its officers and employees, knowingly made false claims to prospective pool

participants regarding its registration status, the use of participant funds, the size of

the pools, and participant returns. The order also finds Empires Consulting

commingled and misappropriated participant funds, and in or around November 2021,

stopped honoring participant withdrawal requests. The CFTC’s litigation against the

individual defendants continues.

Parallel Civil and Criminal Actions

On the same day the CFTC initiated its enforcement action, the U.S. Securities

and Exchange Commission (SEC) filed a parallel action against Empires Consulting,

Pires, Goncalves, and Nicholas for related conduct. The SEC resolved its claims

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