A United States district court in Arizona has imposed monetary sanctions of more than $2.3 million against Purvesh Mankad and two of his affiliate companies, CTAX Series, a commodity pool, and CTAX Partners, which is an introducing broker. Both companies are registered with the Commodity Futures Trading Commission (CFTC).
The consent order came in response to charges filed by the CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are 11 U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in 2020 to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange (CBOE) CME Group International Monetary Market (IMM) Chicago Board of Trade (CBOT) Chicago Mercantile Exchange (CME / GLOBEX) New York Mercantile Exchange (NYMEX) and (COMEX) Kansas City Board of Trade (KCBT) NEX Group plc (NXG.L) Intercontinental Exchange (ICE) International Petroleum Exchange (IPE) 2001 New York Board of Trade (NYBOT) 2005 Winnipeg Commodity Exchange (WCE) 2007 TSX Group’s Natural Gas Exchange Partnership 2008 European Climate Exchange 2010 Chicago Climate Exchange (CCE) 2010 NYSE 2013 London International Financial Futures and Options Exchange (LIFFE) Minneapolis Grain Exchange (MGEX) Nadex (formerly HedgeStreet) OneChicago (Single-stock futures (SSF’s) and Futures on ETFs) Nasdaq Futures Exchange (NFX)
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are 11 U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in 2020 to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange (CBOE) CME Group International Monetary Market (IMM) Chicago Board of Trade (CBOT) Chicago Mercantile Exchange (CME / GLOBEX) New York Mercantile Exchange (NYMEX) and (COMEX) Kansas City Board of Trade (KCBT) NEX Group plc (NXG.L) Intercontinental Exchange (ICE) International Petroleum Exchange (IPE) 2001 New York Board of Trade (NYBOT) 2005 Winnipeg Commodity Exchange (WCE) 2007 TSX Group’s Natural Gas Exchange Partnership 2008 European Climate Exchange 2010 Chicago Climate Exchange (CCE) 2010 NYSE 2013 London International Financial Futures and Options Exchange (LIFFE) Minneapolis Grain Exchange (MGEX) Nadex (formerly HedgeStreet) OneChicago (Single-stock futures (SSF’s) and Futures on ETFs) Nasdaq Futures Exchange (NFX)
Read this Term that found Mankad and his companies liable for fraudulent solicitation, misappropriation of pool participant funds, and making false statements to the National Futures Association (NFA) regarding the fraud.
Fraudulent Activities
The press release of the CFTC detailed that between July 2014 and March 2019, Mankad and CTAX Series offered pool trading services. They claimed the pool participants would be represented only by experienced commodity trading advisors (CTAs). In contrast, Mankad, who did much and eventually all trading in the pool, was not even a CTA and had limited and unsuccessful trading experience.
The defendants additionally misrepresented and omitted facts regarding the charged pool commissions, Mankad and CTAX Partners. Further reckless trading of pool funds from July 2018 resulted in a loss of 89 percent of CTAX pool’s assets. However, the defendants hid the losses from pool participants by delaying monthly account statements.
They even submitted falsified emails to the NFA to showcase a timely distribution of account statements to pool participants.
The order requires payment of more than $1.6 million towards the victims’ restitution, along with a monetary penalty of $727,588.91.
Moreover, the court order permanently prohibited Mankad and his entities from further violating the Commodity Exchange Act (CEA). The defendants have also been permanently banned from registration and trading.
The name of CTAX is connected to another charge from the CFTC against SEC-registered investment advisor Paul Ohanian and his advisory firm, Scottsdale Wealth Planning. Its clients were pool participants contributing funds to the CTAX pool. Ohanian and Scottsdale Wealth have been ordered to pay $338,000 in restitution with a fine of $169,000.
A United States district court in Arizona has imposed monetary sanctions of more than $2.3 million against Purvesh Mankad and two of his affiliate companies, CTAX Series, a commodity pool, and CTAX Partners, which is an introducing broker. Both companies are registered with the Commodity Futures Trading Commission (CFTC).
The consent order came in response to charges filed by the CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are 11 U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in 2020 to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange (CBOE) CME Group International Monetary Market (IMM) Chicago Board of Trade (CBOT) Chicago Mercantile Exchange (CME / GLOBEX) New York Mercantile Exchange (NYMEX) and (COMEX) Kansas City Board of Trade (KCBT) NEX Group plc (NXG.L) Intercontinental Exchange (ICE) International Petroleum Exchange (IPE) 2001 New York Board of Trade (NYBOT) 2005 Winnipeg Commodity Exchange (WCE) 2007 TSX Group’s Natural Gas Exchange Partnership 2008 European Climate Exchange 2010 Chicago Climate Exchange (CCE) 2010 NYSE 2013 London International Financial Futures and Options Exchange (LIFFE) Minneapolis Grain Exchange (MGEX) Nadex (formerly HedgeStreet) OneChicago (Single-stock futures (SSF’s) and Futures on ETFs) Nasdaq Futures Exchange (NFX)
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are 11 U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in 2020 to become the newest U.S. futures exchange. The current exchanges in the U.S. under the regulatory authority of the CFTC include the following: Chicago Board Options Exchange (CBOE) CME Group International Monetary Market (IMM) Chicago Board of Trade (CBOT) Chicago Mercantile Exchange (CME / GLOBEX) New York Mercantile Exchange (NYMEX) and (COMEX) Kansas City Board of Trade (KCBT) NEX Group plc (NXG.L) Intercontinental Exchange (ICE) International Petroleum Exchange (IPE) 2001 New York Board of Trade (NYBOT) 2005 Winnipeg Commodity Exchange (WCE) 2007 TSX Group’s Natural Gas Exchange Partnership 2008 European Climate Exchange 2010 Chicago Climate Exchange (CCE) 2010 NYSE 2013 London International Financial Futures and Options Exchange (LIFFE) Minneapolis Grain Exchange (MGEX) Nadex (formerly HedgeStreet) OneChicago (Single-stock futures (SSF’s) and Futures on ETFs) Nasdaq Futures Exchange (NFX)
Read this Term that found Mankad and his companies liable for fraudulent solicitation, misappropriation of pool participant funds, and making false statements to the National Futures Association (NFA) regarding the fraud.
Fraudulent Activities
The press release of the CFTC detailed that between July 2014 and March 2019, Mankad and CTAX Series offered pool trading services. They claimed the pool participants would be represented only by experienced commodity trading advisors (CTAs). In contrast, Mankad, who did much and eventually all trading in the pool, was not even a CTA and had limited and unsuccessful trading experience.
The defendants additionally misrepresented and omitted facts regarding the charged pool commissions, Mankad and CTAX Partners. Further reckless trading of pool funds from July 2018 resulted in a loss of 89 percent of CTAX pool’s assets. However, the defendants hid the losses from pool participants by delaying monthly account statements.
They even submitted falsified emails to the NFA to showcase a timely distribution of account statements to pool participants.
The order requires payment of more than $1.6 million towards the victims’ restitution, along with a monetary penalty of $727,588.91.
Moreover, the court order permanently prohibited Mankad and his entities from further violating the Commodity Exchange Act (CEA). The defendants have also been permanently banned from registration and trading.
The name of CTAX is connected to another charge from the CFTC against SEC-registered investment advisor Paul Ohanian and his advisory firm, Scottsdale Wealth Planning. Its clients were pool participants contributing funds to the CTAX pool. Ohanian and Scottsdale Wealth have been ordered to pay $338,000 in restitution with a fine of $169,000.