Nicholas D’Arcangelo, the Co-Founder and former Chief Marketing Officer at The Funded Trader, has filed a lawsuit against the prop trading firm and its three top executives for forcibly redistributing his stakes in the company and terminating his health insurance without adequate notice. D’Arcangelo held 19.875 percent of the prop trading platform.
Earlier this week, the lawsuit named the company, along with its CEO Angelo Ciaramello, CFO Carlos Rico-Ospania, and COO Matthew Racz. The complaint alleges that the three executives breached the contract by removing D’Arcangelo from the company earlier this year.
The 66-page court filing mentions that D’Arcangelo, a forex trader, and the three individual defendants registered The Funded Trader as a company in 2021.
“When TFT was formed on May 12, 2021, Plaintiff, Olson, and Defendants Ciaramello and Rico entered into TFT’s original company agreement. This original Operating Agreement set forth the equity interests of its Members in a 'Schedule A' as follows: Ciaramello (25%), Olson (30%), Rico (20%) and D’Arcangelo (25%),” the filing stated.
D’Arcangelo’s lawyers highlighted that The Funded Trader significantly benefited from his social media followers. He has more than 250,000 followers on Instagram and over 40,000 on TikTok.
“From its inception, TFT relied heavily on, and leveraged, Plaintiff’s and Forex League’s already-extensive and engaged existing contacts and customer base for the benefit of TFT,” the filing stated. “By the end of 2022, according to Racz, TFT was generating revenues of multiple seven-figures per month, and it had also paid out over $30 million in shared profits to more than 30,000 retail traders.”
“More recently, TFT’s posts on its social media channels have described its payouts as currently exceeding $100 million.”
Is There a Hint of Fraud?
D’Arcangelo sold 5 percent of his The Funded Trader stakes in August 2021 to Ciaramello for $50,000. Now, he claims that Ciaramello used the company’s proceeds to acquire the shares and also for his personal use, “including for his own private crypto trading.”
The lawsuit further blamed Ciaramello and others for violating their fiduciary obligations towards The Funded Trader and operating multiple other competitor brands, held under the entity Easton Consulting Technologies LLC. Easton additionally came to the spotlight when allegations against LeveledUp Trader surfaced.
D’Arcangelo now insists on retaining his "TFT member" status, along with his 19.875 percent stakes in the company, or he is prepared to relinquish the stakes for a “fair market value… [which] exceeds $75,000, exclusive of interest and costs.” Additionally, he is seeking other monetary relief, including interest and damages, and has requested a trial by jury.
Finance Magnates reached out to The Funded Trader and Ciaramello but did not receive any comments as of press time.
Nicholas D’Arcangelo, the Co-Founder and former Chief Marketing Officer at The Funded Trader, has filed a lawsuit against the prop trading firm and its three top executives for forcibly redistributing his stakes in the company and terminating his health insurance without adequate notice. D’Arcangelo held 19.875 percent of the prop trading platform.
Earlier this week, the lawsuit named the company, along with its CEO Angelo Ciaramello, CFO Carlos Rico-Ospania, and COO Matthew Racz. The complaint alleges that the three executives breached the contract by removing D’Arcangelo from the company earlier this year.
The 66-page court filing mentions that D’Arcangelo, a forex trader, and the three individual defendants registered The Funded Trader as a company in 2021.
“When TFT was formed on May 12, 2021, Plaintiff, Olson, and Defendants Ciaramello and Rico entered into TFT’s original company agreement. This original Operating Agreement set forth the equity interests of its Members in a 'Schedule A' as follows: Ciaramello (25%), Olson (30%), Rico (20%) and D’Arcangelo (25%),” the filing stated.
D’Arcangelo’s lawyers highlighted that The Funded Trader significantly benefited from his social media followers. He has more than 250,000 followers on Instagram and over 40,000 on TikTok.
“From its inception, TFT relied heavily on, and leveraged, Plaintiff’s and Forex League’s already-extensive and engaged existing contacts and customer base for the benefit of TFT,” the filing stated. “By the end of 2022, according to Racz, TFT was generating revenues of multiple seven-figures per month, and it had also paid out over $30 million in shared profits to more than 30,000 retail traders.”
“More recently, TFT’s posts on its social media channels have described its payouts as currently exceeding $100 million.”
Is There a Hint of Fraud?
D’Arcangelo sold 5 percent of his The Funded Trader stakes in August 2021 to Ciaramello for $50,000. Now, he claims that Ciaramello used the company’s proceeds to acquire the shares and also for his personal use, “including for his own private crypto trading.”
The lawsuit further blamed Ciaramello and others for violating their fiduciary obligations towards The Funded Trader and operating multiple other competitor brands, held under the entity Easton Consulting Technologies LLC. Easton additionally came to the spotlight when allegations against LeveledUp Trader surfaced.
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D’Arcangelo now insists on retaining his "TFT member" status, along with his 19.875 percent stakes in the company, or he is prepared to relinquish the stakes for a “fair market value… [which] exceeds $75,000, exclusive of interest and costs.” Additionally, he is seeking other monetary relief, including interest and damages, and has requested a trial by jury.
Finance Magnates reached out to The Funded Trader and Ciaramello but did not receive any comments as of press time.
