The CFTC is coming down on crypto fraud — again. The agency filed a lawsuit Tuesday against Trevor Vernon and his company Argent Capital Management, accusing them of running a commodity pool that defrauded at least 60 investors out of $14.8 million.
Vernon pitched himself as a successful trader. The reality was different. The CFTC says his trading actually “resulted in consistent and catastrophic losses,” topping $8.6 million in red ink across equity index futures, options, and crypto like Bitcoin and Ether.
Investors never heard about those losses. Instead, the CFTC alleges Vernon sent out fake quarterly updates and monthly performance emails, never once disclosing the damage. He also allegedly took $3 million from new investors to pay old ones — a classic Ponzi-style setup — and misappropriated $136,000 for private air travel.
There’s more. Vernon’s company wasn’t registered with the CFTC as federal commodities law requires. And the CFTC says he made false statements to the agency in January when asked about exactly these issues.
The lawsuit is notable because the CFTC is pushing hard to oversee crypto, even as some lawmakers question whether the agency has the resources to police this space. The charges include seven counts covering fraud, failure to register, and making false statements.
The CFTC wants Vernon permanently banned from registration and trading, plus disgorgement, penalties, and restitution for victims.
