PHY Capital Investments LLC is not a credible current investment option. Federal enforcement records describe a commodities-fraud case involving the firm and its manager, Fabio Bretas de Freitas. The company’s CFTC registrations were revoked, a federal judgment permanently barred it from specified commodity-related activities, and Florida records list the business as inactive.
That makes the practical conclusion straightforward: investors should avoid PHY Capital Investments, Phynance Capital Management, and any new solicitation using those names unless its identity and regulatory status can be independently verified through official sources.
What was PHY Capital Investments?
PHY Capital Investments LLC was formerly known as Phynance Capital Management LLC. Federal records described it as a commodity pool operator and commodity trading advisor that solicited investor money for commodity-futures trading. Fabio Bretas de Freitas was identified as the company’s manager and principal.
Florida records show that the company was formed in Delaware and registered in Florida on June 4, 2015. Its Florida registration later became inactive after being revoked for failure to file an annual report on September 27, 2019.
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The firm promoted a proprietary trading system called “SoPhyA.” According to the CFTC’s enforcement record, investors were told that the system had generated approximately 49% in futures-trading profits for one commodity pool between February 2016 and November 2017. That figure should not be treated as independently verified performance or as evidence that the strategy was legitimate.
PHY Capital Investments: quick assessment
| Question | Finding |
|---|---|
| Is the company currently a credible investment option? | No. The available regulatory and court records point in the opposite direction. |
| Was it ever registered? | Yes. It previously held CFTC registrations, but those registrations were later revoked. |
| Was there a federal enforcement case? | Yes. A federal court entered a default judgment involving fraud and misappropriation. |
| Is the Florida entity active? | No. Florida records list PHY Capital Investments LLC as inactive. |
| Did investors necessarily get their money back? | No. The CFTC warned that a restitution order does not guarantee recovery. |
What happened to investor funds?
The central issue was the difference between the money received from clients and the money actually placed into trading accounts:
| Item | Amount |
|---|---|
| Client funds received | $6,894,979 |
| Amount placed into trading accounts | $155,000 |
| Approximate amount not placed into trading accounts | $6,739,979 |
The CFTC said the remaining funds were used for non-trading purposes or to make payments to other clients, conduct it described as akin to a Ponzi scheme. The Department of Justice also reported that investor money was used for personal and other expenses and that funds were transferred abroad.
The enforcement record further states that investors received fictitious account statements showing positions and growth that did not accurately reflect the underlying activity. The federal government also reported that Bretas misrepresented the nature and use of investor funds during regulatory inquiries, including by characterizing victims’ money as loans and creating a fraudulent email account to impersonate an investor in communications with the National Futures Association.
Pros of PHY Capital Investments
There are no meaningful current advantages supported by the official record. Two historical characteristics may look like positives at first glance, but neither provides a reason to invest today.
1. It previously held CFTC registrations
PHY Capital was formerly registered as a commodity pool operator and commodity trading advisor. Registration can matter when evaluating a legitimate futures-industry business, but it is not a guarantee of profitability, honesty, or safety. In this case, the registrations were later revoked.
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2. It claimed to use systematic trading
The firm marketed proprietary software and a quantitative futures strategy. Systematic trading is a legitimate approach in general, but the strategy label does not resolve the more important question: where did the client money go? The CFTC’s findings indicate that only a small portion of the funds received was placed into trading accounts.
3. Some trading did occur
The business was not merely an empty website with no trading activity at all. The CFTC stated that the manager conducted a minimal amount of trading. That fact, however, does not lessen the fraud findings or make the investment suitable for current investors.
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Cons and warning signs
Federal fraud judgment
On October 3, 2019, the U.S. District Court for the Southern District of New York entered a default judgment against PHY Capital and Fabio Bretas de Freitas for fraud and misappropriation involving commodity-futures investments. The judgment permanently enjoined them from further violations of the Commodity Exchange Act.
Most client money was not traded
Only $155,000 of the $6,894,979 received from clients was placed into trading accounts, according to the CFTC. That is approximately 2.25% of the money received. The remaining amount was not used for the stated trading purpose, according to the enforcement findings.
False account statements
Investors reportedly received statements that showed fictitious investment positions and account growth. False statements are especially serious in an investment arrangement because they can conceal losses, prevent clients from checking the underlying assets, and create the appearance of consistent performance.
Personal use and movement of funds
The Department of Justice said Bretas solicited money for commodity-futures investments but used investor funds for personal and other expenses. It also reported that some funds were transferred abroad.
Criminal conviction
On February 28, 2020, a federal court adjudged Bretas guilty of conspiracy to commit wire fraud and commodities fraud. The conviction related to his conduct as an owner and associated person of PHY Capital and involved fraud and misappropriation of commodity-pool funds.
Registrations revoked and activities prohibited
In September 2020, the CFTC revoked:
- PHY Capital’s commodity pool operator registration;
- PHY Capital’s commodity trading advisor registration; and
- Bretas’s associated-person registration.
The federal judgment also permanently barred PHY Capital and Bretas from activities including:
- Trading commodity interests;
- Controlling or directing commodity-interest trading;
- Soliciting or accepting funds for commodity-interest transactions;
- Acting as a principal, agent, officer, or employee of a CFTC-registered entity; and
- Engaging in related commodity-interest business activities.
Large monetary judgments do not guarantee repayment
The CFTC reported the following relief:
| Type of relief | Amount |
|---|---|
| Civil monetary penalty | $12,608,982 |
| Restitution and prejudgment interest | $4,625,166 |
| Disgorgement | $5,752,042 |
The CFTC described the overall monetary relief as more than $17.2 million. These figures should not be added together and presented as a single measure of investor losses; the obligations serve different enforcement purposes and may overlap in treatment.
More importantly for victims, a restitution order is not the same as a completed repayment. The CFTC warned that recovery may be limited if the defendants do not have enough money or assets to satisfy the order.
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The available official records do not support treating PHY Capital Investments as an active, properly operating investment firm:
- Florida corporate status: The Florida registry lists PHY CAPITAL INVESTMENTS LLC as inactive after revocation for failure to file an annual report.
- CFTC status: The firm’s commodity pool operator and commodity trading advisor registrations were revoked in 2020.
- Federal restrictions: The court permanently prohibited the firm and its principal from specified commodity-related activities.
These findings also mean that a website, social-media account, or message using the PHY Capital name should not be assumed to represent the original business. Similar names such as “Phi Capital,” “Phi Capital Partners,” and “Phi Capital Investment Group” may belong to unrelated entities.
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How to check a solicitation using the PHY Capital name
- Get the exact legal name. Ask for the entity’s full legal name, registration number, physical address, and the name of the person soliciting you.
- Search NFA BASIC. Use the National Futures Association’s BASIC database to check futures-industry firms and individuals.
- Check the CFTC record. Do not rely on a screenshot or a claim that the firm was “formerly registered.” Confirm the current status directly with the CFTC.
- Compare identities. Match the legal name, principal, address, registration details, and regulatory history. A similar brand name is not proof of affiliation.
- Do not pay a recovery fee immediately. Former investors can be targeted by recovery scams promising to retrieve lost money in exchange for an upfront payment, tax, insurance charge, or legal fee.
- Preserve evidence. Keep contracts, account statements, payment records, emails, wallet addresses, and messages if you have already sent money.
Common claims that are misleading or outdated
“It was registered, so it was safe.”
That is incorrect. PHY Capital was formerly registered, but registration did not prevent the conduct found by the court. Its relevant registrations were later revoked.
“The proprietary software earned 49%.”
The 49% figure was a marketing claim described in the enforcement record. It is not a current, independently verified performance record. The CFTC’s findings that almost all client money was not placed into trading accounts make the claim particularly unreliable as a basis for investment.
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That is outdated. The initial criminal complaint contained allegations, but Bretas was later adjudged guilty on February 28, 2020. The CFTC also reported a separate federal civil judgment against PHY Capital and Bretas.
“A restitution order means investors were repaid.”
No. A restitution order establishes an obligation; it does not prove that victims recovered their money. The CFTC specifically warned that recovery depends in part on whether the defendants have sufficient assets.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Pros and cons summary
| Pros | Cons |
|---|---|
| Previously held CFTC registrations | Federal fraud and misappropriation judgment |
| Marketed a systematic futures strategy | Only $155,000 of nearly $6.9 million received was placed into trading accounts |
| Some actual trading occurred | False account statements were issued, according to enforcement records |
| Principal adjudged guilty of conspiracy to commit wire fraud and commodities fraud | |
| CFTC registrations revoked | |
| Permanent bans on specified commodity-related activity | |
| Florida entity listed as inactive |
FAQ
Is PHY Capital Investments a legitimate investment company?
The available official records do not support treating it as a legitimate current investment option. A federal court entered a fraud judgment, the CFTC revoked its registrations, commodity-related activities were permanently prohibited, and Florida lists the entity as inactive.
What happened to PHY Capital Investments investors?
The CFTC said the company received $6,894,979 from clients but placed only $155,000 into trading accounts. The remaining funds were allegedly used for non-trading purposes or payments to other clients. Investors also reportedly received false account statements.
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Was Fabio Bretas convicted?
Yes. On February 28, 2020, a federal court adjudged Fabio Bretas de Freitas guilty of conspiracy to commit wire fraud and commodities fraud.
Can investors recover money from PHY Capital?
Possibly, but recovery is not guaranteed. The CFTC warned that a restitution order does not ensure repayment if the defendants lack sufficient funds or assets. Anyone claiming to offer recovery should be checked carefully for an advance-fee or impersonation scam.
Is PHY Capital the same as Phi Capital or another similarly named company?
That has not been established. Similar names may belong to unrelated businesses. Verify the exact legal name, principal, address, registration records, and regulatory history before assuming a connection.
Where can I check a futures investment firm?
Start with the National Futures Association’s BASIC database and the CFTC’s official records. Match the exact firm and individual names rather than relying on branding, logos, or screenshots.
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The Bottom Line
Bottom line: avoid PHY Capital Investments. Its historical registration and claimed systematic strategy do not outweigh the federal fraud judgment, the finding that most client funds were not traded, the false statements reported by regulators, the criminal conviction of its principal, the revoked CFTC registrations, the permanent activity bans, and the company’s inactive Florida status.
If someone is currently soliciting money under the PHY Capital, Phynance, or Fabio Bretas names, treat the approach as a potential impersonation or recovery scam until official CFTC and NFA records prove otherwise.
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