I Filed a Complaint with the CFTC's Own Inspector General — Here Is Why
Why I Filed with the Inspector General
Every federal agency has an Inspector General. The Inspector General's office exists for one purpose: to investigate waste, fraud, abuse, and misconduct within the agency it oversees.
I filed a complaint with the CFTC's Inspector General because the documented record of CFTC v. Ikkurty, No. 1:22-cv-02465 (N.D. Ill.), contains evidence of conduct that, if it occurred in a private organization, would trigger an immediate internal investigation.
Issue One: The Investigator Who Never Reviewed the Primary Evidence
On September 5, 2023, the CFTC's lead investigator testified under oath at a deposition. She admitted that she had never reviewed the blockchain.
In a digital asset fraud case, the blockchain is the primary evidence. The CFTC's theory — the Genie Technologies theory — was a claim about how Rose City Income Fund operated. The 885 blockchain transactions directly contradict that theory.
The investigator who built the case, who presumably provided the probable cause basis for the May 16, 2022 search warrant, who drove the enforcement action that resulted in a $209 million judgment — never looked at the primary evidence.
Issue Two: The Expert Witness Who Contradicted the Agency's Theory
The CFTC retained and paid an expert witness to testify in support of its case. That expert testified that Rose City Income Fund was not a Ponzi scheme.
The agency's own expert contradicted the agency's own theory of the case. This raises serious questions about the quality of the pre-litigation review that led to the enforcement action.
Issue Three: The Covert Posture and the Ex Parte Hearing
At the May 11, 2022 hearing, the CFTC's attorney told the court that the agency wanted to maintain a "covert posture." The hearing lasted eleven minutes. I was not present. My attorneys were not notified. The judge froze $209 million in assets.
The Inspector General should examine whether the decision to pursue an ex parte approach was consistent with CFTC policy and legal requirements, and whether the representations made to the court were accurate and complete.
The FOIA Requests
In parallel with the Inspector General complaint, I have filed Freedom of Information Act requests with six federal agencies: CFTC Inspector General, FBI, SEC, CFTC, DOJ Civil Division, and Oregon U.S. Attorney's Office.
The government will either produce the records or explain why it cannot. Either answer is informative.
Full case record: https://cftcsucks.com/263
Case No. 1:22-cv-02465 (N.D. Ill.) | Appeal No. 24-2684
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