Masterminds of $1.9 M Investment Scam Permanently Banished from Forex Industry

The U.S. District Court permanently banned Storm Bryant and Elijah Bryant III, the duo who perpetrated the $1.9 million forex scam, and the three businesses associated with them - CapitalStorm LLC, GenerationBlack LLC and Ncome LLC - entered the forex industry.

In 2021, the U.S. Commodity Futures Trading Commission (CTFC) filed a complaint. The regulator believed that Bryants solicited ineligible retail forex traders through three companies associated with them, lying about the use of customer funds, returns, and the ability and legality of the defendants to trade on behalf of their customers.

The defendants never registered with the regulator or opened accounts to trade on behalf of their clients but only defrauded them with demo accounts.

The two misappropriated $1.9 million from 233 clients. Not only did they use the clients' funds to pay for their lavish lifestyles, but they also returned $664,000 to the clients as principal or “forex trading profit” in the manner of a Ponzi scheme.

The court permanently banned the defendants and three related firms from trading under the supervision of the CFTC. It also ordered them to pay $1.3 million in restitution to the victims and a $3.9 million penalty.

The court lifted an injunction to unfreeze Bryants's assets. However, the funds could only be used to pay restitution and fines. At the same time, the CFTC cautioned that the victims may not be paid due to insufficient funds from the defendants.