The operator of an investment trading scheme that promised to generate profits from futures trading using a proprietary trading algorithm is being sentenced to four years in jail in the U.S. for fraud. According to court filings, starting in 2019, Melton promised investors high guaranteed returns from his purported trading algorithm. However, authorities alleged that the algorithm didn’t exist, and that investors’ money was largely used to pay personal expenses, and to pay returns to earlier investors. They also alleged that Melton actually did almost no trading with investors’ money and the trading he did carry out was largely unprofitable. In its complaint, which charged Melton with violating federal securities laws, the SEC is also seeking permanent injunctions, disgorgement plus interest and civil penalties.