The trading company behind the DULuth trading platform is a subsidiary of the D.C. government.
In 2015, the U.S. Department of Treasury, along with the Securities and Exchange Commission, slapped DULZY Trading LLC with a $12.3 million fine, for not reporting a capital gain in its financial statements.
That money went into a bank account owned by the company’s parent, which then sold it to the government.
The money was earmarked for the U:1 Capital Fund, which was to help the agency help its local trading companies.
Instead, the money was used to buy a luxury home in D.S., and then sold to another family.
That family eventually got rid of the home, and moved to Florida.
According to documents released by the Treasury Department, DULZA Trading had a $3.3-million profit in 2015.
The company then took in $2.3 billion in cash, making it one of the largest traders in the world.
In 2015 and 2016, the DOLZY Trade LLC also got into financial trouble.
A new government program allowed DULZZY to borrow from the Treasury for $1.7 million to repay loans from its other subsidiaries.
DULIZY then borrowed another $1 million from a second Treasury bank.
This money was not reported to the Securities Act.
That led to a big loss for the company, which eventually had to close down.
The U. S. Department said the DZY trading company used $2 million of that money to pay a $7.3, or $1,100, penalty for selling a home that was in foreclosure, and another $3,200 to cover unpaid taxes.
The $2,200 in unpaid taxes came from a property tax bill that was filed in DULAZY’s name.
Sources: The Washington Post, Bloomberg Businessweek, The Hill