IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLORADO

Civil Action No. _______________________ 

 

COMMODITY FUTURES TRADING COMMISSION,

Plaintiff,

v. 

VENTURE CAPITAL INVESTMENTS LTD., 

a Colorado limited liability company, 

and 

 

BREONNA S. CLARK a/k/a Eliot Clark 

a/k/a Alexander Pak individually, and 

d/b/a Venture Capital Investments and 

The Life Group, 

 Defendants. 

_________________________________________________________________________ 

COMPLAINT FOR INJUNCTIVE RELIEF, RESTITUTION, CIVIL 

MONETARY PENALTIES AND OTHER EQUITABLE RELIEF 

UNDER THE COMMODITY EXCHANGE ACT

_________________________________________________________________________ 

Plaintiff, Commodity Futures Trading Commission (“Commission” or “CFTC”) by and 

through its attorneys, alleges as follows: 

I. SUMMARY

1. From at least March 1, 2018 through at least June 30, 2019 (“Relevant Period”), 

Venture Capital Investments Ltd. (“VCI”), by and through its principal, Breonna S. Clark a/k/a 

Eliot Clark a/k/a Alexander Pak, and d/b/a Venture Capital Investment and The Life Group, 

(“Clark”) (collectively “Defendants”) and others and Clark directly, fraudulently solicited and 

received at least $534,829 from at least seventy-two individuals (“pool participants”). 

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Defendants solicited and received these funds in connection with pooled investments in retail 

foreign currency contracts (“forex”), Bitcoin, and other virtual or cryptocurrencies (“Altcoins”). 

Rather than use all of pool participants’ funds to trade on behalf of the pool, Defendants traded 

only a small portion and instead misappropriated over $400,000 of pool participants’ funds to 

pay for personal expenses and to make Ponzi-type payments to other pool participants. To 

conceal their misappropriation and trading losses, Defendants issued false account statements to 

pool participants that inflated and misrepresented the value of the pool participants’ investments 

in the pool and the pool’s trading returns. 

2. At various times during the Relevant Period, several pool participants requested 

to withdraw funds from their accounts. In some instances, Clark failed to respond at all to a 

pool participant’s request. In other instances, Clark responded with false excuses. Among the 

false excuses Clark made to pool participants why Defendants could not comply was that the 

CFTC was conducting an “audit.” Clark has not returned funds to a number of pool 

participants despite their requests for withdrawals. 

3. Furthermore, at no time during the Relevant Period was VCI or Clark registered 

with the CFTC as a commodity pool operator (“CPO”) nor was Clark registered as a 

commodity trading advisor (“CTA”). 

4. Most, if not all, of the pool participants were not eligible contract participants 

(“ECPs”) pursuant to Section 1a(18)(A)(xi) of the Commodity Exchange Act (“Act”), 7 U.S.C. 

§1a(18)(A)(xi) (2018). 

5. By this conduct, and the conduct further described herein, Defendants engaged, 

are engaging in, and/or are about to engage in acts and practices in violation of Sections 

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4o(1)(A) and (B), 4m(1), and 6(c)(1) of the Act 7, U.S.C. §§ 6o(1)(A), (B), 6m(1), 9(1) (2018); 

and CFTC Regulations (“Regulation[s]”) 5.3(a)(2) and (3) and 180.1(a), 17 C.F.R. §§ 5.3(a)(2), 

(3), 180.1(a) (2019).

6. Unless restrained and enjoined by this Court, Defendants will likely continue to 

engage in the acts and practices alleged in this Complaint, or in similar illegal acts and practices, 

as described more fully below. 

7. Accordingly, pursuant to Sections 6c(a) and 2(c)(2)(C)(vii) of the Act, 7 U.S.C. 

§§ 13a-1, 2(c)(2)(C)(vii) (2018), the CFTC brings this action to enjoin Defendants’ unlawful acts 

and practices, to compel their compliance with the Act and Regulations, and to enjoin them from 

engaging in any commodity-related activity. In addition, the Commission seeks civil monetary 

penalties, restitution and remedial ancillary relief, including, but not limited to, trading and 

registration bans, disgorgement, pre- and post-judgment interest, rescission, and such other and 

further relief as the Court may deem necessary and appropriate. 

II. JURISDICTION AND VENUE

8. This Court has jurisdiction over this action pursuant to 28 U.S.C. § 1331 

(2018) (codifying federal question jurisdiction) and 28 U.S.C. § 1345 (2018) (providing 

that U.S. district courts have original jurisdiction over civil actions commenced by the 

United States or by any agency expressly authorized to sue by Act of Congress). In 

addition, Section 6c(a) of the Act, 7 U.S.C. § 13a-1(a) (2018), authorizes the CFTC to 

seek injunctive relief against any person whenever it shall appear that such person has 

engaged, is engaging, or is about to engage in an act or practice constituting a violation of 

any provision of the Act or any rule, regulation, or order thereunder. Section 

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2(c)(2)(C)(vii) of the Act, 7 U.S.C. § 2(c)(2)(C)(vii) (2018), provides the CFTC with 

jurisdiction over the forex solicitations and transactions at issue in this action. 

9. Venue properly lies with this Court pursuant to 7 U.S.C. § 13a-1(e) (2018) 

because Defendants reside in this District, transacted business in this District, and certain acts 

and practices in violation of the Act occurred, are occurring, or are about to occur, within this 

District, among other places. 

III. PARTIES

10. Plaintiff Commodity Futures Trading Commission is an independent federal 

regulatory agency charged by Congress with the administration and enforcement of the Act, 

7 U.S.C. §§ 1-26 (2018), and the Regulations promulgated thereunder, 17 C.F.R. §§1.1-190.10 

(2019). The CFTC maintains its principal office at Three Lafayette Centre, 1155 21st Street 

N.W., Washington, DC 20581. 

11. Defendant Venture Capital Investments Ltd. was a business organized under 

the laws of Colorado and registered as a limited liability company as of April 3, 2018 with its 

principal place of business in Denver, Colorado. Clark was VCI’s principal and manager. VCI 

was dissolved on October 17, 2018. VCI has never been registered with the Commission in 

any capacity.

12. Defendant Breonna S. Clark, a/k/a Eliot Clark, a/k/a/ Alexander Pak, d/b/a 

Venture Capital Investments and The Life Group, currently resides in the Denver, Colorado 

area. From at least March 1, 2018 to April 2, 2018, Clark solely controlled, operated and did 

business as Venture Capital Investments. Subsequently, on April 3, 2018, Clark organized VCI 

as a limited liability company under the laws of Colorado. On October 17, 2018, Clark 

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dissolved VCI. After VCI’s dissolution, Clark operated and continued to do business as The 

Life Group. Clark has never been registered with the Commission in any capacity. 

IV. BACKGROUND

13. A “commodity pool” is defined in Section 1a(10) of the Act, 7 U.S.C. § 1a(10) 

(2018) as any investment trust, syndicate or similar form of enterprise operated for the purpose 

of trading commodity interests.

14. A “commodity pool operator” is defined in Section 1a(11) of the Act, 7 U.S.C. § 

1a(11) (2018), as any person engaged in a business that is of the nature of a commodity pool, 

investment trust, syndicate, or similar form of enterprise, and who, in connection therewith, 

solicits, accepts, or receives from others, funds, securities or property, either directly or through 

capital contributions, the sale of stock or other forms or securities or otherwise, for the purpose 

of trading in commodity interests.

15. A ”commodity trading advisor” is defined in Section 1a(12) of the Act, 7 U.S.C. § 

1a(12) (2018) as any person who for compensation or profit, engages in the business of advising 

others, either directly or through publications, writings or electronic media, as to the value or 

advisability of trading, among other things, forex, as well as any person who for compensation 

and profit, and as part of a regular business, issues or promulgates analyses or reports concerning 

the value of or the advisability of trading in forex. 

16. In the case of an individual, Section 1a(18) of the Act, 7 U.S.C. § 1a(18) (2018), 

in part, defines an ECP to mean “acting for its own account—(xi) an individual who has amounts 

invested on a discretionary basis, the aggregate of which is in excess of—(I) $10,000,000; or (II) 

$5,000,000 and who enters into the agreement, contract, or transaction in order to manage the 

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risk associated with an asset owned or liability incurred, or reasonably likely to be owned or 

incurred, by the individual.”

17. Section 2(c)(2)(C)(vii) of the Act, 7 U.S.C. § 2(c)(2)(C)(vii)(2018) provides that 

the CFTC shall have jurisdiction over an account or pooled investment vehicle that is offered for 

the purpose of trading, or that trades, any agreement, contract, or transaction in foreign currency 

described in clause 2(c)(2)(C)(i). 7 U.S.C. § 2(c)(2)(C)(i)(I)(2018), in relevant part, applies to, 

any agreement, contract or transactions in foreign currency that is offered to, or entered into 

with, a person that is not an ECP, unless the counterparty, or the person offering to the 

counterparty, of the person is one of the enumerated exceptions not applicable here. 

V. FACTS

A. Background 

18. During the Relevant Period, Clark organized a commodity pool under the name 

Venture Capital Investments Pool (“VCI pool”). Pool participants sent money to the VCI pool 

to be deposited into the VCI pool account for the purpose of trading forex, Bitcoin and Altcoins. 

19. From March 1, 2018 until April 2, 2018, Clark was the CPO for the VCI Pool. 

20. On April 3, 2018, Clark registered VCI as a Colorado limited liability company

From April 3, 2018 until October 17, 2018, VCI was the CPO for the VCI pool. 

21. On October 17, 2018, Clark dissolved VCI as a limited liability company. From 

that date until the end of the Relevant Period, Clark once again was the CPO for the VCI pool. 

22. During the periods described above, Clark and VCI acted, respectively, as the 

CPO for the VCI Pool in that they operated the VCI Pool for the purpose of soliciting pool 

participants, accepting pool participant funds and trading on behalf of pool participants. 

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23. At all times during the Relevant Period, Clark was the CTA for the VCI Pool in 

that, for compensation or profit, Clark advised others as to the value or advisability of trading 

pool participant funds. Clark exercised discretionary trading authority in connection with retail

forex pool accounts for or on behalf of persons who were not ECPs. 

B. Defendants’ Fraudulent Scheme

24. During the Relevant Period, Defendants’ fraudulently solicited at least seventytwo pool participants to trade forex, Bitcoin or Altcoins in a commodity pool operated at various 

points by Clark or VCI. These solicitations occurred through social media (e.g., Facebook and 

Twitter), electronic mail, webinars, instant messaging and face-to-face meetings touted as 

“financial seminars” that were held in churches or in the home of one of the pool participants. 

As a result of these solicitations, pool participants sent Defendants over $534,829. Rather than 

trade all pool participant funds, Defendants misappropriated at least $450,302 which were used 

for Ponzi-type payments and personal expenses. In order to conceal their misappropriation, 

Defendants issued false statements, lied to pool participants about the availability of their funds 

and masked their misappropriation by making Ponzi-type payments. 

1. Defendants Made Fraudulent Solicitations

25. During the course of the solicitations Defendants told prospective pool 

participants that Defendants had trading experience and expertise, had an excellent track record, 

and promised future profitability trading forex and virtual currencies. For example, in: 

a. an October 1, 2018 electronic mail sent to prospective pool 

participants, Defendants claimed that they had a “master team 

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of traders [able to] execute the Foreign Exchange markets with 

precision and accuracy.”

b. an April 12, 2018 Facebook posting, Defendants stated “[t]he 

average IRA and 401k yield a 12-19% return a year. With 

Investing in Venture you could yield 12-16% per month.” 

c. a May 26, 2018 Facebook posting, Defendants stated “[o]ur 

Forex Fiat trading has secure (sic) 21% this month”. 

d. a June 28, 2018 VCI’s Facebook page posting Defendants 

stated that: “We have closed the month of June with a 19% 

return to our clients!!!” 

e. an April 16, 2018 VCI Twitter account posting, Defendants

stated “[w]e specialize in trading your capital like the Banks 

and Large Institutions that only pay you a return .1% - 1.5% on 

average in your savings account. We return our clients on 

average 12-21% monthly.” 

f. an April 16, 2018 instant message to a prospective pool 

participant, Defendants stated that “[t]his is a Forex Fund 

investment that pays a 12-21% monthly ROI. We also have 

crypto investments which return 18% weekly.” 

g. an April 14, 2018 VCI Twitter posting, Defendants stated that 

they have “revolutionized the art of Forex trading” and 

specialized in “innovative calculated trading and risk 

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management to give our clients the largest return on their 

capital.” 

26. All of Defendants’ statements set out in paragraph 25 are false. 

27. In fact, Defendants did not possess trading experience and expertise, have an 

excellent track record, and their promises of future profitability were fraudulent. 

28. Defendants’ statements that they had trading experience and expertise is 

contradicted by the fact that, upon information and belief, Clark, as CTA for the VCI pool: 

1) had very little trading experience; and 2) lost what little money Clark traded on behalf of the 

pool participants. 

29. In addition, upon information and belief, one of the “master traders” touted by 

Clark as “highly skilled and trained” was a truck driver who provided administrative assistance 

to VCI.

30. Further, Clark did not have an excellent track record trading. In fact, Clark’s 

claims of, among other things: 1) 12-16% monthly returns; 2) that VCI’s Forex Fiat trading 

secured 21% monthly; and 3) that VCI returned on average 12-21% monthly are simply false. 

What little trading Clark engaged in was unprofitable and Defendants misappropriated the bulk 

of pool participant funds. 

31. Defendants’ claims of future profitability are also false for the same reasons as 

identified in paragraphs 28 and 30. 

32. Defendants also made misrepresentations regarding the risk of loss involved with 

trading forex, Bitcoin and Altcoins. For example, Defendants represented: 

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a. in an April 17, 2018 electronic mail, Clark circulated a 

PowerPoint Presentation to prospective pool participants 

promising that pool participants received a “capital lock” which 

protected pool participants’ principal capital from any risk of 

loss. 

b. in an October 1, 2018 circular to prospective pool participants, 

that they had implemented “stringent trading plans . . . to 

safeguard all investor capital to ensure minimal loss.” 

33. Defendants’ statements in paragraph 32 were false. Defendants did not have a 

“capital lock” nor did they have “stringent trading plans. . . to safeguard all investor capital to 

ensure minimal loss.” Rather than safeguard pool participant funds, Defendants misappropriated 

the bulk of their funds. 

34. In soliciting pool participants, Defendants made no attempt to determine if they 

were ECPs under 7 U.S.C. §1a(18)(A)(xi) (2018). In fact, most, if not all, of Defendants’ pool 

participants were not ECPs.

2. Defendants Misappropriated Pool Participant Funds

35. During the Relevant Period, Defendants instructed pool participants to send their 

funds directly to VCI’s bank accounts at J.P. Morgan Chase Bank N.A. and US Bank N.A. 

Defendants also instructed pool participants to send funds through service providers such as 

PayPal, Zelle, Venmo, Cash App and a Bitcoin wallet. 

36. During the Relevant Period, Defendants received at least $534,829 in pool 

participant funds. Of this amount, Defendants transferred approximately $121,165 to various 

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cryptocurrency and forex trading accounts in the name of Breonna Clark at cryptocurrency and 

forex exchanges. Of this amount, approximately $37,282 was returned from cryptocurrency and 

forex trading accounts to VCI and/or Clark bank accounts. Upon information and belief, the 

remaining approximately $83,883 was lost trading. Defendants spent $644 for business 

expenses.

37. Defendants used the remaining pool participants’ funds, at least $450,302, to pay 

for Clark’s personal expenses, including the purchase or lease of a BMW 5 series automobile, 

the purchase of jewelry, gas, groceries, cash withdrawals totaling over $93,000, and to make 

Ponzi-type payments to pool participants to create the illusion of profitability.

3. Defendants Concealed Their Misappropriation 

38. To conceal their misappropriation, Defendants sent pool participants account 

statements which purported to show trading gains. The account statements were a sham. For 

example, one pool participant received a November 1, 2018 statement showing more than a 67% 

return over a 14 week period. Another pool participant received a May 25, 2018 account 

statement showing a 26% return for the month. These statements were false as little of the pool 

participants’ funds were used to trade and what trading was done, upon information and belief, 

was unprofitable. 

39. Defendants concealed their misappropriation by making Ponzi-type payments to 

pool participants. These payments purportedly represented profits that Defendants made on 

behalf of pool participants.

40. At other times during the Relevant Period, pool participants sought to withdraw 

their funds. In several of these instances, Clark ceased communicating with these pool 

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participants and blocked these pool participants on social media, including VCI’s Facebook 

page. 

41. Clark also told pool participants that a “CFTC audit” was a reason he could not 

return pool participants’ funds. In fact, Clark’s statement that Defendants were subject to a 

CFTC “audit” was false. No such CFTC “audit” ever occurred. Defendants never returned 

funds to most of those pool participants who requested their money back. 

C. Clark Was a Controlling Person of Venture Capital Investment Ltd. 

42. At all times, Clark was a controlling person of VCI. Clark founded and 

organized VCI, acted as its principal and manager, and was in charge of marketing and pool 

participant relations. Clark either directly or indirectly controlled content for the VCI Facebook 

page and Twitter account, opened bank accounts and was the signatory on such bank accounts 

and controlled the Bitcoin wallet address to which pool participants were directed to deposit 

Bitcoin. Clark was in charge of hiring employees and contractors for VCI. Clark acted in bad 

faith or knowingly induced VCI’s fraudulent acts.

VI. VIOLATIONS OF THE COMMODITY EXCHANGE ACT AND REGULATIONS

COUNT ONE

FRAUD BY A COMMODITY POOL OPERATOR

AND

COMMODITY TRADING ADVISOR

Violations of Section 4o(1) of the Act, 7 U.S.C. § 6o(1) (2018) 

 

43. The allegations contained in paragraphs 1 through 42 are realleged and 

incorporated herein by reference.

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44. Section 1a(11) of the Act, 7 U.S.C. § 1a(11) (2018), defines a “commodity pool 

operator” as any person engaged in a business that is of the nature of a commodity pool, 

investment trust, syndicate, or similar form of enterprise, and who, in connection therewith, 

solicits, accepts, or receives from others, funds, securities or property, either directly or through 

capital contributions, the sale of stock or other forms or securities or otherwise, for the purpose 

of trading in commodity interests.

45. 17 C.F.R. § 5.1(d)(1) (2019) defines a CPO for purposes of 17 C.F.R. part 5, as 

“any person who operates or solicits funds, securities, or property for a pooled investment 

vehicle that is not an ECP as defined in section 1a(18) of the Act, and that engages in retail forex 

transactions.” 

46. During the period from at least March 1, 2018 to April 2, 2018 and October 17, 

2018 to June 30, 2019, Clark acted as a CPO for the VCI pool. Further, from April 3, 2018 to 

October 17, 2018, VCI acted as a CPO for the VCI pool. During these time frames, Clark and 

VCI acted as CPOs because they solicited and accepted funds for a pooled investment vehicle 

from non-ECPs for the purpose of engaging in trading retail forex. 

47. Section 1a(12) of the Act, 7 U.S.C. § 1a(12) (2018), in part, defines a “commodity 

trading advisor” as any person who for compensation or profit, engages in the business of 

advising others, either directly or through publications, writings or electronic media, as to the 

value or advisability of trading forex as well as any person who for compensation and profit, and 

as part of a regular business, issues or promulgates analyses or reports concerning the value of or 

the advisability of, among other things, trading forex. 

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48. Under 17 C.F.R. §5.1(e)(1) (2019), a CTA for purposes of 17 C.F.R. part 5 

means, in relevant part, any person who exercises discretionary trading authority or obtains 

written authorization to exercise discretionary trading authority over any account for or on behalf 

of any person that is not an ECP in connection with retail forex transactions. 

49. Clark acted as a CTA because for compensation or profit, Clark advised pool 

participants on trading retail forex. In addition, Clark acted as a CTA because Clark exercised 

discretionary trading authority or obtained written authorization to exercise discretionary trading 

authority over pool accounts for or on behalf of persons who were not ECPs in connection with 

retail forex transactions. 

50. Sections 4o(1)(A) and (B) of the Act, 7 U.S.C. § 6o(1)(A) and (B) (2018), in 

relevant part, makes it unlawful for CPOs and CTAs, whether registered with the Commission or 

not, by use of the mails or any other means of interstate commerce, directly or indirectly, to: (A) 

employ and device, scheme or artifice to defraud any client or pool participant, or (B) engage in 

any transaction, practice, or course of business that operates as a fraud or deceit upon any client 

or pool participant. 

51. Section 2(c)(2)(C)(ii)(I) of the Act, 7 U.S.C. § 2(c)(2)(C)(ii)(I) (2018), provides in 

relevant part, that an account or pooled investment vehicle that is offered for the purpose of 

trading, or that trades, any agreement, contract, or transaction in foreign currency described in 

clause 2(c)(2)(C)(i) shall be subject to Section 4o of the Act. 

52. VCI and Clark directly violated 7 U.S.C. § 6o(1)(A)-(B)(2018) while acting as 

CPOs because they, among other things, intentionally or recklessly: (1) misappropriated pool 

participant funds; (ii) made material misrepresentations about Defendants’ trading expertise, 

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track record, profitability, and minimized the risk of loss; and (3) created and distributed to pool 

participants fabricated account statements. 

53. Clark directly violated 7 U.S.C. § 6o(1)(A)-(B)(2018) while acting in his capacity 

as a CTA, because he, among other things, intentionally or recklessly: (1) misappropriated pool 

participant funds; (ii) made material misrepresentations about Defendants’ trading expertise, 

track record, profitability, and minimized the risk of loss; and (3) created and distributed to pool 

participants fabricated account statements. 

54. Each act of misappropriation, misrepresentation of material fact, and issuance of a 

false report, including but not limited to those specifically alleged herein, is alleged as a separate 

and distinct violation of 7 U.S.C. § 6o(1)(A) and/or (B)(2018). 

55. Clark held and exercised direct and indirect control over VCI and either did not 

act in good faith or knowingly induced VCI’s violations and is therefore liable, pursuant to 

7 U.S.C. § 13c(b)(2018), for VCI’s violations of 7 U.S.C. § 6o(1)(A) and/or (B)(2018). 

56. The foregoing acts, omissions, and failures by Clark and other officers, 

employees, and agents of VCI occurred within the course or scope of their employment or office 

with VCI. Pursuant to 7 U.S.C. § 2(a)(1)(B)(2018) and 17 C.F.R. 1.2 (2019), VCI is liable as a 

principal for its officers, employees, and agents’ acts, omissions, and failures, including but not 

limited to Clark, in violation of 7 U.S.C. § 6o(1)(A) and/or (B)(2018). 

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COUNT TWO 

FRAUD BY DECEPTIVE DEVICE OR CONTRIVANCE

Violations of 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018) and17 C.F.R. § 180.1(a) (2019) 

57. The allegations contained paragraphs 1 through 56 are realleged and incorporated 

herein by reference.

58. Section 6(c)(1) of the Act, 7 U.S.C. § 9(1), makes it unlawful for any person, 

directly or indirectly, to: 

use or employ, or attempt to use or employ, in connection with any 

swap, or a contract of sale of any commodity in interstate 

commerce, or for future delivery on or subject to the rules of any 

registered entity, any manipulative or deceptive device or 

contrivance, in contravention of such rules and regulations as the 

Commission shall promulgate by not later than 1 year after [July 

21, 2010, the date of enactment of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act] . . . . 

59. 17 C.F.R. § 180.1(a) provides: 

It shall be unlawful for any person, directly or indirectly, in 

connection with any swap, or contract of sale of any commodity in 

interstate commerce, or contract for future delivery on or subject to 

the rules of any registered entity, to intentionally or recklessly: 

(1) Use or employ, or attempt to use or employ, 

any manipulative device, scheme, or artifice to

defraud; 

(2) Make, or attempt to make, any untrue or 

misleading statement of a material fact or to omit to 

state a material fact necessary in order to make the 

statements made not untrue or misleading;

(3) Engage, or attempt to engage, in any act, 

practice, or course of business, which operates or 

would operate as a fraud or deceit upon any person . 

. . . 

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60. As alleged above, Defendants violated 7 U.S.C. § 9(1)(2018) and 17 C.F.R. 

§180.1(a)(2019) in connection with contracts of sale of commodities in interstate commerce by, 

among other things: (1) misappropriated pool participant funds; (ii) made material 

misrepresentations about Defendants’ trading expertise, track record, profitability, and 

minimized the risk of loss; and (3) created and distributed to pool participants fabricated account 

statements. 

61. Defendants intentionally or recklessly engaged in the acts and practices alleged 

above. 

62. Each act of misappropriation, misrepresentation of material fact, and issuance of a 

false report, including but not limited to those specifically alleged herein, is alleged as a separate 

and distinct violation of 7 U.S.C. § 9(1)(2018) and 17 C.F.R. §180.1(a)(2019). 

63. Clark held and exercised direct and indirect control over VCI and either did not 

act in good faith or knowingly induced VCI’s violations and is therefore liable, pursuant to

7 U.S.C. § 13c(b) (2018), for VCI’s violations of 7 U.S.C. § 9(1)(2018) and 17 C.F.R. 

§180.1(a)(2019). 

64. The foregoing acts, omissions, and failures by Clark and other officers, 

employees, and agents of VCI occurred within the course or scope of their employment or office 

with VCI. Pursuant to 7 U.S.C. § 2(a)(1)(B) (2018) and 17 C.F.R. 1.2 (2019), VCI is liable as a 

principal for its officers, employees, and agents’ acts, omissions, and failures, including but not 

limited to Clark, in violation of 7 U.S.C. § 9(1)(2018) and 17 C.F.R. §180.1(a)(2019).

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COUNT THREE

FAILURE TO REGISTER AS A CPO

Violations of Section 4m(1) of the Act, 7 U.S.C. § 6m(1) (2018) and 17 C.F.R. § 

5.3(a)(2)(i) (2019) 

65. The allegations in contained in paragraphs 1 through 64 are realleged and 

incorporated herein by reference. 

66. With certain specified exceptions and exemptions not applicable here, Section 

4m(1) of the Act, 7 U.S.C. § 6m(1)(2018), makes it unlawful for any CPO to make use of the 

mails or any means or instrumentality of interstate commerce in connection with its business 

unless it is registered with the CFTC. 

67. Similarly, 17 C.F.R. § 5.3(a)(2)(i) (2019) makes it unlawful for any CPO engaged 

in retail forex transactions defined in 17 C.F.R. § 5.1(d)(1) (2019), to act as a CPO without being 

so registered. 17 C.F.R. § 5.1(d)(1) defines a CPO as “any person who operates or solicits funds, 

securities, or property for a pooled investment vehicle that is not an ECP as defined in section 

1a(18) of the Act, and that engages in retail forex transactions.” 

68. During the period from at least March 1, 2018 to April 2, 2018 and October 17, 

2018 to June 30, 2019, Clark acted as a CPO. Further, from April 3, 2018 to October 17, 2018, 

VCI acted as a CPO. During these time frames Clark and VCI solicited and accepted funds for a 

pooled investment vehicle from non-ECPs for the purpose of engaging in retail forex 

transactions.

69. VCI and Clark violated 7 U.S.C. § 6m(1)(2018) and 17 C.F.R. 

§ 5.3(a)(2)(i)(2019) by engaging in these activities without having registered as CPOs. 

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70. Clark held and exercised direct and indirect control over VCI and either did not 

act in good faith or knowingly induced VCI’s violations and is therefore liable, pursuant to 

7 U.S.C. § 13c(b)(2018) of the Act, for VCI’s violations of 7 U.S.C. § 6m(1)(2018). 

71. Each use by VCI and Clark of the mails or any means or instrumentality of 

interstate commerce in connection with their business as a CPO without proper registration, 

including, but not limited to, those specifically alleged herein, is alleged as a separate and 

distinct violation of 7 U.S.C. § 6m(1)(2018). 

COUNT FOUR

FAILURE TO REGISTER AS A CTA

Violations of Section 4m(1) of the Act, 7 U.S.C. § 6m(1) (2018) and 

17 C.F.R. § 5.3(a)(3)(i) (2019) 

72. The allegations contained in paragraphs 1 through 71 are realleged and 

incorporated herein by reference. 

73. With certain specified exceptions and exemptions not applicable here, Section 

4m(1) of the Act, 7 U.S.C. § 6m(1)(2018), makes it unlawful for any CTA to make use of the 

mails or any means or instrumentality of interstate commerce in connection with its business 

unless it is registered with the CFTC. Similarly, 17 C.F.R. § 5.3(a)(3)(i)(2019) makes it 

unlawful for any CTA engaged in retail forex transactions to act as a CTA without being 

registered. 

74. Pursuant to 17 C.F.R. § 5.1(e)(1) (2019), a CTA, in relevant part, means any 

person who exercises discretionary trading authority or obtains written authorization to exercise 

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discretionary trading authority over any account for or on behalf of any person that is not an ECP

in connection with retail forex transactions. 

75. As set forth above, Clark acted as a CTA because for compensation or profit, 

Clark advised pool participants who were not ECPs on trading retail forex. In addition, Clark 

acted as a CTA because Clark exercised discretionary trading authority or obtained written 

authorization to exercise discretionary trading authority over pool accounts for or on behalf of 

persons who were not ECPs in connection with retail forex transactions. 

76. As set forth above, Clark used the mails or other means or instrumentalities of 

interstate commerce in connection with the VCI pool’s business. 

77. Clark violated 7 U.S.C. § 6m(1)(2018) and 17 C.F.R. § 5.3(a)(3)(i)(2019) by 

engaging in these activities without having registered as a CTA.

78. Each use by Clark of the mails or any means or instrumentality of interstate 

commerce for the in purpose of trading in commodity interests and, in connection therewith, 

solicited, accepted, or received funds, either directly or otherwise, for the purpose of trading in 

commodity interests, including, but not limited to, those specifically alleged herein, is alleged as 

a separate and distinct violation of 7 U.S.C. § 6m(1)(2018). 

VII. RELIEF REQUESTED

WHEREFORE, the Commission respectfully requests that this Court, as authorized by 

7 U.S.C. § 13a-1 (2018), and pursuant to the Court’s inherent equitable powers, enter: 

A. an order finding Clark and VCI liable for violating 7 U.S.C. §§ 6o(1)(A) and (B), 

6m(1) and 9(1) (2018); and 17 C.F.R. §§ 5.3(a)(2), (3) and 180.1(a) (2019). 

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B. an order of permanent injunction restraining and enjoining Clark, VCI and their

affiliates, agents, servants, employees, successors, assigns, attorneys, and all persons in active 

concert with them, who receive actual notice of such order by personal service or otherwise,

from engaging in the conduct described above, in violation of 7 U.S.C. §§ 6o(1)(A) and (B), 

6m(1) and 9(1)(2018); and 17 C.F.R. §§ 5.3(a)(2), (3) and 180.1(a)(2019); 

C. an order of permanent injunction restraining and enjoining Clark, VCI and their

affiliates, agents, servants, employees, successors, assigns, attorneys, and all persons in active 

concert with them, from directly or indirectly:

i. trading on or subject to the rules of any registered entity (as that term is 

defined in 7 U.S.C. § la(40) (2018));

ii. entering into any transactions involving “commodity interests” (as that 

term is defined in 17 C.F.R. § 1.3 (2019) for accounts held in the name of Clark or VCI or for 

accounts in which Clark or VCI has a direct or indirect interest; 

iii. having any commodity interests traded on VCI’s or Clark’s behalf;

iv. controlling or directing the trading for or on behalf of any other person or 

entity, whether by power of attorney or otherwise, in any account involving commodity interests; 

v. soliciting, receiving or accepting any funds from any person for the 

purpose of purchasing or selling any commodity interests; 

vi. applying for registration or claiming exemption from registration with the 

Commission in any capacity, and engaging in any activity requiring registration or exemption 

from registration with the Commission, except as provided for in 17 C.F.R. § 4.14(a)(9) (2019); 

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vii. acting as a principal (as that term is defined in 17 C.F.R. § 3.1(a) (2019)), 

agent, or any other officer or employee of any person registered, exempted from registration, or 

required to be registered with the Commission, except as provided for in 17 C.F.R. § 4.14(a)(9) 

(2019);

D. an order directing Clark and VCI, as well as any third-party transferee and/or 

successors thereof, to disgorge, pursuant to such procedure as the Court may order, all benefits 

received including, but not limited to, salaries, commissions, loans, fees, revenues, and trading 

profits derived, directly or indirectly, from acts or practices which constitute violations of the Act 

and Regulations as described herein, including pre-judgment and post-judgment interest; 

E. an order directing Clark and VCI, as well as any successors thereof, to make full 

restitution to every person who has sustained losses proximately caused by the violations 

described herein, including pre-judgment and post-judgment interest; 

F. an order directing Clark and VCI, as well as any successors thereof, to rescind, 

pursuant to such procedures as the Court may order, all contracts and agreements, whether 

implied or express, entered into between, with or among Clark and VCI and any of the pool 

participants whose funds were received by Clark and VCI as a result of the acts and practices 

that constituted violations of the Act and Regulations as described herein; 

G. an order directing Clark and VCI to pay a civil monetary penalty assessed by the 

Court, in an amount not to exceed the penalty prescribed by 7 U.S.C. § 13a-1(d)(1) (2018), as 

adjusted for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015, Pub. L. 114-74, tit. VII, § 701, 129 Stat. 584, 599-600, see 17 C.F.R. 

§ 143.8 (2019), for each violation of the Act and Regulations, as described herein; 

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H. an order requiring Clark and VCI to pay costs and fees as permitted by 28 U.S.C.

§§ 1920 and 2413(a)(2) (2018); and

I. an order providing such other and further relief as this Court may deem necessary

and appropriate under the circumstances. 

February 14, 2020 Respectfully Submitted,

/s/ Kim G. Bruno 

Kim G. Bruno 

D.C. Bar No. 389899

Senior Trial Attorney

Michael Solinsky

D.C. Bar No. 433754

Chief Trial Attorney

Commodity Futures Trading Commission

Division of Enforcement 

Three Lafayette Centre

1155 21st Street NW

Washington, DC 20581

Telephone: (202) 418-5000

Facsimile: (202) 418-5538 

Email:kbruno@cftc.gov; msolinsky@cftc.gov

Attorneys for the Commodity Futures Trading 

Commission

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