NOLA FX Forex Fraud Case Ends in $9.2 Million Penalty

The CFTC forex fraud case against Michael B. DePetrillo, Meteor LLC and NOLA FX Capital Management LLC has ended in a default judgment imposing a $9,211,492 civil monetary penalty, the regulator announced on October 21.

Court Finds Misappropriation

According to the CFTC, the U.S. District Court for the Eastern District of Louisiana found that the defendants fraudulently solicited and misappropriated more than $3 million.

They issued false account statements and diverted funds to existing participants in a Ponzi-like manner, personal expenses and DePetrillo’s own trading.

Permanent Trading and Registration Bans

The judgment imposes permanent trading and registration bans and resolves the CFTC’s 2024 complaint.

That complaint alleged the defendants had raised at least $7.6 million from 40 individuals, promising to pool their money for leveraged forex trading. Those historical fundraising figures differ from the misappropriation amount cited in the latest announcement.

Earlier Criminal Sentence

DePetrillo pleaded guilty in February 2025. On July 23, 2025, he received nine years in prison and a separate $6,748,412 restitution order, the CFTC said.

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