A Marietta man was ordered to pay more than $1 million in fines and restitution after allegedly bilking investors out of money they thought was going into a foreign exchange investment pool.
The Commodity Futures Trading Commission said Wednesday that Jonathan A. Parker and his firm, QuantX Capital LLC, both of Marietta, were ordered to pay a $680,000 civil penalty and $341,500 in restitution.
Parker was also permanently banned from trading on the commodities exchanges or registering as a commodities trader as part of the order.
However, Parker was already operating his investment operation without bothering to register his investment pool with the agency, according to the CFTC.
According to the CFTC, Parker committed fraud and misappropriated at least $341,500 that he collected from eight or more investors. Instead of putting the money in an investment pool for foreign exchange trading, Parker kept the money and spent it on business and personal expenses, the agency said.
To cover up the misappropriation, Parker issued statements to clients showing fake trades and profits, the CFTC said.
It was unclear whether Parker is also under criminal investigation related to his activities. The CFTC could not be immediately reached for comment.
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