The Commodity Futures Trading Commission today announced Judge Samuel A. Lindsay of the U.S. District Court for the Northern District of Texas entered multiple orders and a judgment against Rudy Avila; L.I.F.T. Group LLC (LIFT), Trading Ventures Group (TVG), Capital Ventures Group, LLC, (CVG), and Ventures Group, LLC ( VGL), all U.S. companies; and CIG Internacional Sociedad Anónima (CIG) and Trading Technologies Group Sociedad Anónima (TTG), both Costa Rican companies, requiring monetary relief totaling over $10.5 million The orders and judgment resolve the CFTC’s enforcement action against these defendants filed Sept.14, 2021. [See CFTC Press Release 8424-21]
Judge Lindsay entered a memorandum and order on Aug. 1, 2024, a clarification order on Aug. 7, 2024, and a judgment on Aug. 8, 2024, granting the CFTC’s motions for default and finding the defendants had engaged in commodity futures, options on commodities futures, and forex fraud. Judge Lindsay also found CIG and TVG, while acting as unregistered commodity trading advisors (CTAs), engaged in CTA fraud. In granting permanent injunctive relief, the court found the defendants “repeatedly and deliberately” engaged “two separate but related multi-year Ponzi schemes,” thereby violating “core provisions of the act [Commodity Exchange Act].” Judge Lindsay noted Avila’s actions demonstrated a “high level of scienter and egregious fraud.”
The orders and judgment require Avila, LIFT, CIG, and TTG to pay, jointly and severally, $3,626,751.90 in restitution to defrauded clients in the first fraudulent scheme. The order also requires Avila, TVG, CVG, and VGL to pay, jointly and severally, $1,814,720.41 in restitution to defrauded clients in the second scheme. Further, the orders and judgment require Avila to pay a $1,525,831.05 civil monetary penalty (CMP); LIFT, TTG, TVG, CVG, and VGL each to pay a $429,028 CMP; and CIG and TVG each to pay a $858,056 CMP.
Parallel Criminal Action
On June 3, 2021, Avila pled guilty to one count of wire fraud based, in part, on the same conduct alleged in the CFTC’s complaint. [United States v. Avila, Docket No. 3:21-cr-00168-M-1 (N.D. Tx 2021).] Avila was sentenced to 210 months in prison and an additional three years of supervised release.
The CFTC thanks the Office of the United States Attorney for the Northern District of Texas and the FBI Dallas/Fort Worth Office. The CFTC acknowledges the assistance of the Superintendencia General de Valores de Costa Rica (SUGEVAL), the UK Financial Conduct Authority and the Financial Services Regulation and Supervision Department of Nevis.
The Division of Enforcement staff responsible for this case are Xavier Romeu-Matta, Michael Cazakoff, Judith M. Slowly, Mary Lutz, Gates S. Hurand, Lenel Hickson, Jr., and Manal M. Sultan, and former staff member Steven I. Ringer.
