In a recent court filing, Kelly M. Crawford, acting as the court-appointed Receiver for Traders Domain FX Ltd., has initiated legal action against KZAR’s Inc., operating as Exotic Diamonds & Fine Jewelry. The lawsuit, filed in the United States District Court for the Southern District of Texas, accuses KZAR’s Inc. of receiving a fraudulent transfer of $1 million from Holton Buggs Jr., a key figure in an alleged Ponzi scheme orchestrated by Traders Domain FX Ltd. The complaint outlines that this transfer was made without providing equivalent value and claims it was part of efforts to defraud creditors and investors involved in the scheme. The Receiver seeks to recover these funds to benefit defrauded customers and creditors.
Kelly M. Crawford was appointed as Receiver following actions by the Commodity Futures Trading Commission (CFTC) against multiple defendants associated with Traders Domain FX Ltd., who are accused of running a fraudulent commodities trading operation. The CFTC alleges that from 2019 to 2024, the defendants solicited over $283 million from more than 2,000 U.S. customers under false pretenses.
The complaint details how Buggs misled investors about the legitimacy and profitability of investments through various misrepresentations and omissions, contributing to significant financial losses for many individuals.
Source: 425cv04739_Kelly_M_Crawford_v_Kzar_Original_Complaint_Southern_District_of_Texas.pdf
