The Commodity Futures Trading Commission (CFTC) is seeking entry of default against the individuals behind fraudulent digital asset trading scheme Icomtech.
The relevant request has been filed by the regulator with the California Central District Court.
The CFTC requests that the Clerk of Court enter default in this action pursuant to Federal Rule of Civil Procedure 55(a) against Defendants David Brend, Moses Valdez, Marco A. Ruiz Ochoa, and Juan Arellano Parra, on grounds that the defendants were duly served with the Summons and Complaint in this action but have failed to appear or plead within the time prescribed by the Federal Rules of Civil Procedure.
Let’s note that the entry of default is a formal step in many lawsuits. It is usually followed by default judgment which stipulates the penalties to be imposed on the defendants.
The CFTC complaint charges the defendants with fraudulently soliciting hundreds of thousands of dollars from more than 170 individuals in the U.S. and other countries for Icomtech to supposedly trade bitcoin and other digital asset commodities for them, and for misappropriating customer funds. The complaint alleges the defendants’ fraud and misappropriation scheme predominately targeted Spanish-speaking communities.
In its continuing litigation against the defendants, the CFTC seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged.
