CFTC uncovers $14M crypto fraud scheme in North Carolina

The CFTC charged Trevor Vernon and Argent Capital Management with running a $14M fraudulent commodity pool, alleging trading losses, false reports, and Ponzi-like payments. The agency seeks penalties and bans.

The Commodity Futures Trading Commission (CFTC) has filed a civil complaint against Trevor Vernon and Argent Capital Management LLC, alleging they operated a fraudulent commodity pool in North Carolina. According to the CFTC, the scheme raised over $14 million from at least 60 investors between March 2022 and February 2024. The complaint states that Vernon and his company claimed to trade equity index futures, options, and crypto assets. However, the CFTC alleges the operation suffered significant losses, with at least $8.6 million lost, and that Vernon distributed falsified performance reports to investors. Additionally, the CFTC claims the operation functioned as a Ponzi-like scheme, using new investors’ funds to pay earlier participants, and that neither Vernon nor his company were properly registered. The agency seeks restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction against Vernon and Argent Capital Management.