The Commodity Futures Trading Commission (CFTC) has launched a lawsuit against DSD Capital Management LLC. The complaint was filed on May 7, 2025, at the New York Northern District Court.
From at least February 2021 through at least November 2023 (the “Relevant Period”), Dean Dellas individually, and by and through an entity he founded, DSD Capital Management LLC, engaged in a fraudulent scheme through which they misappropriated more than $690,000 from clients who had entrusted the defendants to manage nearly all of their lifesavings.
During the Relevant Period, Dellas, acting as a Commodity Trading Advisor (“CTA”) or associated person of a CTA, and DSD Capital, acting as a CTA, committed fraud through misappropriation and through material misrepresentations and omissions.
The defendants engaged in highly risky and ultimately unsuccessful futures trading in clients’ accounts without the clients’ knowledge.
In addition, the defendants misappropriated fraudulently charged fees that were excessive and unjustified given their promise to only charge fees equating to 10% of profits.
The vast majority of the money Defendants misappropriated was ultimately transferred to bank accounts Dellas controlled and either withdrawn in cash by Dellas or used by Dellas to pay his personal expenses.
To keep their fraud ongoing, Defendants took steps to conceal and obfuscate their conduct. Among other things, Dellas concealed the substance of documents he directed his clients
to sign. Dellas also impersonated a client, instructing one brokerage firm to lift the restrictions it had placed on transfers of funds to DSD Capital and another firm to stop sending a client paper account statements, despite that client repeatedly asked Dellas for statements.
The defendants are accused of violations of Sections 4b(a)(1)(A) and (C) and 4o(1)(A)-(B) of the Commodity Exchange Act (the “Act”), 7 U.S.C. §§ 6b(a)(1)(A),(C); 6o(1)(A)-(B).
The CFTC seeks civil monetary penalties and remedial ancillary relief, including but not limited to trading and registration bans, restitution, disgorgement, pre- and post-judgment interest.
