Japan-Based Forex Wizard Faces NFA Action Over Alleged Pool Scheme and Investor Withdrawals

The US derivatives industry regulator, the National Futures Association (NFA), has filed a disciplinary complaint against Japan-based Forex Wizard Inc. and its principal, Mitsuaki Kataoka, accusing them of operating an undisclosed forex investment pool, delaying investor withdrawals, and failing to cooperate with regulatory inquiries.

According to the complaint, issued on December 22, 2025, Forex Wizard has been registered as a commodity trading advisor since 2005 and listed as an inactive NFA member for many years. Despite repeatedly reporting that it was not managing customer funds or conducting any trading activity, NFA alleges that the firm accepted investor money and pooled it to trade foreign exchange, while withdrawals were delayed or not honored.

The investigation began in May 2025 after a complaint from an investor in Malaysia who said he had requested the withdrawal of more than ¥72.5 million, roughly $500,000, without receiving the funds or meaningful responses. Additional complaints later followed from investors in Japan and other jurisdictions, with reported losses ranging from around $180,000 to several hundred thousand dollars.

NFA said its examination was repeatedly hindered by incomplete records and a lack of cooperation. Client lists submitted by Forex Wizard failed to include known complainants, and requested bank statements and website access credentials were not fully provided. Regulators also raised concerns about the firm’s online marketing, including statements suggesting NFA and CFTC oversight of the forex pool, which NFA considers misleading.

The case highlights how overseas investment schemes can gain traction through websites, online referrals, and social media, often appealing to younger investors looking for alternative returns. In some situations, regulators warn that unclear structures and delayed withdrawals can overlap with broader financial crime risks, including the misuse of investor accounts or informal money movement arrangements.

If the allegations are upheld, Forex Wizard and Kataoka could face fines, suspension, or expulsion from NFA membership, and potential bans from future registration in the US derivatives industry. The respondents have 30 days to formally answer the complaint, or the allegations may be deemed admitted.