US derivatives regulator The Commodity Trading Commission (CFTC) announced that Judge Carlos E. Mendoza of the US District Court for the Middle District of Florida issued a default judgment granting a permanent injunction and imposing monetary penalties against Florida resident Avinash Singh and his company, Highrise Advantage, LLC.
The decision resolves an enforcement action brought by the CFTC on September 9, 2020, against Singh, Highrise and eight other defendants in a multi-level, multi-million dollar foreign exchange (forex) scheme. The case against Highrise Advantage was amended on February 4, 2021 to add new evidence regarding the extent of the fraud and an additional fraud charge.
The order finds that Singh solicited and fraudulently misappropriated funds through the main Highrise cargo tank and four feeder cargo tanks. failed to register with the CFTC as required; and breached regulatory requirements relating to the operation of cargo tanks.
The court’s order for default judgment and permanent injunction prohibits Singh and Highrise from engaging in conduct that violates the Commodity Exchange Act (CEA) and CFTC regulations as charged and requires them to pay $25,558,594 in compensatory damages and $76,675,782 in civil monetary penalties. The order also permanently bars Singh and Highrise from registering with the CFTC and trading in any registered entity.
On July 5, 2023, the court entered consent orders against the operators of the four feeder commodity tanks SR&B Investment Enterprises, Inc., Green Knight Investments, LLC, Bull Run Advantage, LLC and King Royalty, LLC. and operators Surujpal Sahdeo, Daniel Colegero, Randy Rosseau and Hemraj Singh, respectively. This order resolves the dispute in full.
Highrise Advantage Case Background
The order finds that Highrise and Singh collected nearly $58 million from investors and feeder funds, but used less than $2.5 million for actual foreign exchange transactions, embezzled more than $25 million and used investor funds to make Ponzi-style payments and to pay personal expenses. The master pool sent statements to investors and feeder funds falsely showing profits and no losses.
Parallel Criminal Action
Singh was also indicted by the US Attorney for the Middle District of Florida on February 17, 2021, on 10 counts of wire fraud and six counts of money laundering. He failed to appear at a scheduled hearing and was a fugitive from the law until he was recently arrested in Florida on an outstanding warrant on October 19, 2023. The criminal case against Singh is pending before Judge Mendoza and Judge Robert M. Norway.
The CFTC cautions that orders requiring the return of funds to victims may not result in the recovery of any lost money because the offenders may not have sufficient funds or assets. The CFTC will continue to fight vigorously to protect customers and to ensure that violators are held accountable.
The CFTC acknowledges and thanks the US Attorney for the Middle District of Florida, the National Futures Association, the Cyprus Securities and Exchange Commission, the UK Financial Conduct Authority and the Australian Securities and Investments Commission for their assistance in this matter .