CFTC Secures Default Judgment Against Louisiana Defendants in Retail Forex Fraud Scheme
The CFTC secured a default judgment against Michael B. DePetrillo, Meteor LLC, and NOLA FX Capital Management LLC for a forex fraud scheme. The order requires a $9,211,492 penalty after more than $3 million was misappropriated. This follows DePetrillo’s nine-year prison sentence and $6,748,412 restitution in the related criminal case.
SCCG Take — Dual-track enforcement imposes multimillion-dollar penalties and lifetime bans, reinforcing strict accountability in CFTC-regulated markets.
The Commodity Futures Trading Commission announced that the U.S. District Court for the Eastern District of Louisiana entered a default judgment against Michael B. DePetrillo, Meteor LLC, and NOLA FX Capital Management LLC for their participation in a fraudulent retail forex scheme.
The court found the defendants fraudulently solicited and misappropriated more than $3 million from participants. They falsely represented that participant funds would be used to trade retail forex, made material misrepresentations and omissions regarding profitability, and issued false account statements to conceal their misconduct.
Misuse of Participant Funds
The court further found the defendants misappropriated participant funds by making payments to existing participants in a manner akin to a Ponzi scheme. They paid DePetrillo’s personal expenses and traded in DePetrillo’s personal account. The default judgment resolves all claims in the CFTC’s 2024 complaint.
Parallel Criminal and Civil Outcomes
On February 18, 2025, in a related criminal case, DePetrillo pleaded guilty to violating the Commodity Exchange Act in connection with the same conduct. On July 23, 2025, the court sentenced him to nine years in prison and ordered him to pay $6,748,412 in restitution. The civil order requires the defendants to pay a $9,211,492 civil monetary penalty. It permanently enjoins the defendants from further violations of the Commodity Exchange Act and Commission regulations as charged and imposes permanent trading and registration bans. As detailed in the CFTC announcement, the Commission appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of Louisiana and the FBI New Orleans Division in this matter.
This enforcement action illustrates the CFTC’s use of both civil and criminal avenues to address fraud in retail forex trading. Market participants face substantial monetary penalties together with lifetime operational restrictions upon violation.
Reporting: CFTC Enforcement Actions
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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