The Honourable Susan Oki Mollway of the US District Court for the District of Hawaii has entered a consent order of permanent injunction against Patrick Rakotonanahary, formerly of Punta Gorda, Florida. Judge Mollway also adopted the Findings and Recommendation for a Default Judgment issued by the Honorable Richard L Puglisi, US Magistrate Judge for the District of Hawaii, against Rakotonanahary’s company, Cyber Market Group LLC (Cyber).
The CFTC charged Rakotonanahary and Cyber with operating a multi-million dollar foreign currency (forex) Ponzi scheme in Hawaii and elsewhere in the United States and with misappropriating customer funds for their personal use.
The consent and default orders require Rakotonanahary and Cyber to each to pay a USD500,000 civil monetary penalty and impose permanent trading and registration bans against them. In a related criminal action, Rakotonanahary was ordered to pay $3,473,562.56 in restitution to Cyber victims.
The consent order finds that since 18 June, 2008, Rakotonanahary and Cyber solicited funds from clients to trade forex by falsely promising weekly returns from four to 10 percent. The order further finds that these statements were, in fact, false as Rakotonanahary and Cyber knew that they lacked the funds to make such payments and that they used their client’s own funds to make these payments. The order also finds that the defendants provided a letter to Cyber clients that misrepresented the balance of clients’ funds and that Rakotonanahary misappropriated client funds for his personal expenses.