CFTC Files Fraud Complaint Against Investment Advisors for Misappropriating Over $690,000

The U.S. Commodity Futures Trading Commission (CFTC) has filed a complaint in the U.S. District Court for the Northern District of New York against Dean S. Dellas and his investment advisory firm, DSD Capital Management, LLC, alleging fraud and misappropriation of client funds.

According to the complaint, Dellas and DSD Capital acted as commodity trading advisors from February 2021 to November 2023, misappropriating more than $690,000 from at least two clients, a 61-year-old man (Client A) and his 91-year-old mother (Client B).

The defendants allegedly executed tens of thousands of futures trades in Client A’s account without warning him of the risks, leading to $169,000 in losses and commissions. Despite these losses, Dellas concealed the true financial status of the account and misappropriated $235,000 by secretly transferring funds to himself and charging excessive fees beyond the agreed-upon 10% of profits.

After defrauding Client A, Dellas and DSD Capital allegedly expanded their scheme to Client A’s elderly mother (Client B). Without her knowledge, they executed massive futures trades in her account, causing more than $196,000 in losses, while misappropriating $459,000 through unauthorized transfers and fraudulent fees.

To perpetuate the fraud, Dellas also misled Clients A and B about financial transactions, concealed the substance of documents he directed Clients A and B to sign, and even impersonated them in dealings with futures commission merchants.

The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act, as charged.