CFTC Secures Default Judgment Ordering Louisiana Forex Defendants to Pay $9.2 Million Civil Penalty
The court entered default judgment against Michael B. DePetrillo, Meteor LLC and NOLA FX Capital Management LLC for a fraudulent retail forex scheme. They misappropriated more than $3 million and were ordered to pay $9,211,492 with permanent bans. DePetrillo pleaded guilty on Feb. 18, 2025 and was sentenced to nine years in prison and $6,748,412 restitution on July 23, 2025.
SCCG Take — This dual civil-criminal action shows the CFTC’s capacity to impose severe financial and liberty costs on fraud in regulated derivatives markets.
The Commodity Futures Trading Commission announced a default judgment from the U.S. District Court for the Eastern District of Louisiana against Michael B. DePetrillo, Meteor LLC, and NOLA FX Capital Management LLC for operating a fraudulent retail forex scheme.
The court found the defendants fraudulently solicited and misappropriated more than $3 million from participants. They falsely represented that funds would be used to trade retail forex, made material misrepresentations and omissions about profitability, and issued false account statements to conceal the misconduct.
Fraudulent Fund Misuse and Ponzi-Like Payments
Defendants misappropriated participant funds by making payments to existing participants in a manner akin to a Ponzi scheme. They also directed money toward DePetrillo‘s personal expenses and trading in his personal account.
The default judgment requires payment of 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. This resolves all claims in the CFTC’s 2024 complaint.
Parallel Criminal Case and Agency Assistance
In the related criminal matter, DePetrillo pleaded guilty on Feb. 18, 2025, 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 $6,748,412 in restitution.
The CFTC noted assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana and the FBI New Orleans Division. The scale of the civil penalty alongside the criminal sentence underscores the dual exposure for misconduct in CFTC-regulated markets.
Reporting: CFTC Enforcement Actions
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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