The Commodity Futures Trading Commission obtained a freeze against the assets of Michael Salerno and various entities he controlled as a result of alleged fraud in soliciting persons to become proprietary traders in a purported foreign exchange trading operation. According to the CFTC, from at least January 2017 through at least March 2018, Mr. Salerno and his companies – Black Diamond Forex LP, BDF Trading LP and Advanta Capital Markets, Inc., (collectively, “Black Diamond entities”) – raised at least US $310,000 from retail persons he solicited to become proprietary traders in his operation, promising to supplement their risk capital with his own, and share trading profits 70/30 between traders and the Black Diamond entities. The CFTC alleged that Mr. Salerno never used any of the traders’ funds for trading, did not supplement the funds in any account, misled traders regarding his own trading success, and committed other fraud against the traders. Among other remedies, the CFTC seeks a preliminary and permanent injunction against all the defendants, disgorgement and a fine.