The Commodity Futures Trading Commission has sued EmpiresX and its executives for “at least $41.6 million” in fraud.

The CFTC’s lawsuit was filed in parallel with an
SEC civil fraud lawsuit
pertaining to the same conduct.

Named defendants in the
CFTC’s lawsuit
are Empires Consulting Corp, Emerson Pires, Flavio Goncalves and Joshua Nicholas.

As alleged by the regulator;

Beginning in at least September 2020 and continuing through the present Emerson Pires, Flavio Goncalves, Joshua Nicholas and Empires Consulting Corp. … have engaged in an ongoing scheme through which they fraudulently solicited individuals in the United States and elsewhere to trade commodity futures, options, and digital assets, among other products, through commodity interest pools under the name EmpiresX.

In connection with this fraudulent scheme, Defendants have accepted and pooled at least $41.6 million from over 12,500 individuals, including at least $14.3 million from over 2,300 individuals in the United States.

Just $1 million of the “at least” $41.6 million invested into EmpiresX was used for trading… and completely lost.

Between them, Pires, Goncalves and Nicholas

misappropriated at least $5 million in participant funds for improper, non-investment purposes, including luxury travel, dining, car leases, shopping, and cash withdrawals.

Fraud identified by the CFTC pertains to EmpiresX running a “commodity pool”, in violation of the Commodity Exchange Act.

Allegations pertaining to EmpiresX’s illegal conduct largely mirror those already covered in our
SEC lawsuit coverage
– but within the context of CEA violations, as opposed to the Securities and Exchange Act.

On April 5, 2021, Pires opened a futures trading account with the Account ID of xxxx5996 in the name of Empires Consulting.

In the account opening documents, Pires represented that Empires Consulting had an estimated liquid net worth of between one and five million, identified himself as the “owner-signatory, trader,” and stated that he had over ten years of “extensive” experience trading options, commodities, and stocks.

In connection the account opening process, Pires described Empires Consulting as follows:

“We specialize in management consulting where we aid business restructure debt and iMovie cash flows to further scale profit.”

When asked if Empires Consulting was required to be registered as a CPO or CTA, Pires responded no, and he further confirmed that the account “will not be used to manage, custody, or pool client funds and the assets are solely [the] property of the applicant.”

On April 18, 2021, and in response to a query from the firm carrying the EX Trading Account, Pires represented that he is the “owner of Empires Consulting Corp and I confirm that I do not accept or solicit funds from outside investors.”

In aggregate, Defendants caused $9,477,715 to be deposited into the Bank A Account between November 2, 2020 and February 22, 2022, including at least $8 million in funds recei

🤖 Quick Answer

What is the CFTC lawsuit against EmpiresX about?
The Commodity Futures Trading Commission sued EmpiresX and its executives for approximately $41.6 million in commodities fraud. The defendants allegedly engaged in a scheme since September 2020, fraudulently soliciting individuals globally to trade commodity futures, options, and digital assets through commodity interest pools under the EmpiresX name.

Who are the named defendants in the CFTC case?
The defendants include Empires Consulting Corp, Emerson Pires, Flavio Goncalves, and Joshua Nicholas. These individuals and the company face allegations of orchestrating fraudulent solicitation activities targeting investors in the United States and internationally.

Is there related SEC action?
Yes, the CFTC lawsuit was filed in parallel with a civil fraud lawsuit filed by the Securities and Exchange Commission. Both regulatory bodies are pursuing the

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