The U.S. Commodity Futures Trading Commission (CFTC) has charged a North Carolina commodity pool operator and his company with fraud. He claimed that they collected too much money $14 million from investors while hiding heavy trading losses in futures, options and crypto assets.
According to a complaint filed in federal court, Trevor L. Vernon and Argent Capital Management LLC allegedly solicited at least the funds. 60 investors. They did this by portraying the investment pool as consistently profitable.
This was despite suffering millions of dollars in losses and running what the CFTC described as a Ponzi-like scheme.
CFTC alleges fake returns mask heavy trading losses
The CFTC claims that: March 2022 and February 2026Vernon and Argent Capital Management agreed to more than one $14.8 million from investors through a commodity pool known as Argent Capital Partners LP.
The fund claims to invest in stock index futures, options, crypto assets and other investments.
Accordingly complaintThe defendants repeatedly claimed that Vernon was a successful trader. They handed out monthly performance updates, quarterly account statements, and Schedule K-1 tax forms showing non-existent incremental profits.
Instead, regulators allege Vernon suffered significant and consistent trading losses while continuing to present false account balances to investors.
The CFTC also alleges that some investor funds were used to pay previous participants in a Ponzi-like scheme designed to hide the fund’s losses.
Crypto formed part of broader investment strategy
Although the complaint focuses primarily on commodity futures and options trading, regulators say the fund also supports investments in cryptocurrencies and blockchain-related opportunities.
The complaint alleges that Vernon deposited at least $446,000 The investor transferred his funds to personal accounts at two crypto exchanges, where he traded assets including Bitcoin and Ethereum.
Allegedly, these transactions $108,000. In general, the CFTC says trading between futures, options and crypto accounts results in losses exceeding: $8.6 million.
In addition to allegations of fraud, the CFTC alleges that Argent Capital Management operated as an unregistered commodity pool operator. Vernon allegedly approached investors without the required registration.
The complaint also accuses Vernon of making false statements under oath during the regulator’s investigation.
Regulator calls for bans and compensation for investors
The CFTC is seeking compensation for affected investors, forfeiture of allegedly ill-gotten gains, civil penalties, permanent trading and registration bans, and injunctions to prevent further violations of the Commodity Exchange Act.
The allegations have not yet been proven and the case will proceed in the U.S. District Court for the Western District of North Carolina.
Final Summary
- The CFTC alleges that Trevor Vernon and Argent Capital Management collected more than $14 million by hiding hefty losses.
- Regulators are seeking damages, civil penalties, trading bans and other remedies.
