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Showing posts with the label CFTC | Enforcement Actions

CFTC | Enforcement Actions: CFTC Orders ACI Capital Group, L.L.C. and Alexandre P. Guimaraes to Pay Approximately $850,000 in Restitution and Penalty to Settle Forex Fraud Charges

RELEASE: pr6257-12 May 14, 2012 CFTC Orders ACI Capital Group, L.L.C. and Alexandre P. Guimaraes to Pay Approximately $850,000 in Restitution and Penalty to Settle Forex Fraud Charges Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against Alexandre P. Guimaraes and his company, ACI Capital Group, L.L.C. (ACI), both of Irvine, Calif., for fraudulently soliciting customers to trade off-exchange foreign currency contracts (forex), issuing hundreds of false monthly account statements to customers to conceal trading losses, and misappropriating a portion of customer funds. Guimaraes also was charged with acting as an unregistered commodity trading advisor (CTA). The CFTC order requires Guimaraes and ACI jointly and severally to pay $428,046.31 in restitution and a $

CFTC | Enforcement Actions: CFTC Charges Utah Residents Christopher Hales, Eric Richardson and their Company, Bentley Equities, LLC, with Fraud and Misappropriation

May 3, 2012 CFTC Charges Utah Residents Christopher Hales, Eric Richardson and their Company, Bentley Equities, LLC, with Fraud and Misappropriation CFTC seeks an emergency restraining order freezing defendants’ assets Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a federal court action in Utah charging Bentley Equities, LLC (Bentley), a Delaware corporation, and its principals, Christopher D. Hales and Eric A. Richardson, with fraud and misappropriation in connection with commodity futures trading. Richardson resides in Cedar Hills, Utah, and Hales is currently an inmate at the Florence, Colo., Federal Correction Complex. None of the defendants has ever been registered with the CFTC. The CFTC’s complaint, filed May 2, 2012, in the U.S. District Court for the District of Utah, alleges that from at least April 2009 through August 2010, the defendants fraudulently solicited and accepted more than $1.1 mill

CFTC | Enforcement Actions: Federal Court in Illinois Orders Trading Point of Financial Instruments Ltd. to Pay $140,000 Penalty for Acting as Unregistered Retail Forex Dealer

RELEASE: pr6248-12 May 1, 2012 Federal Court in Illinois Orders Trading Point of Financial Instruments Ltd. to Pay $140,000 Penalty for Acting as Unregistered Retail Forex Dealer Trading Point also ordered to cease soliciting U.S. customers and to modify website Action part of CFTC’s second nationwide sweep against forex firms for failure to register under the 2008 Farm Bill, the Dodd-Frank Act, and CFTC regulations Washington DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent order requiring Trading Point of Financial Instruments Ltd. (Trading Point), of Limassol, Cyprus, to pay a $140,000 civil monetary penalty to settle CFTC charges. The order finds that Trading Point unlawfully solicited U.S. customers to engage in foreign currency (forex) transactions and operated as a Retail Foreign Exchange Dealer (RFED) without being registered with the CFTC. The consent order, entered April 25,

CFTC | Enforcement Actions: Virginia Federal Court Orders Ronald W. Smith, Jr., Doing Business as Safeguard 3030 Investment Club,

RELEASE: pr6235-12 April 18, 2012 Virginia Federal Court Orders Ronald W. Smith, Jr., Doing Business as Safeguard 3030 Investment Club, to Pay More than $3 Million in Forex Ponzi Scheme In a related criminal proceeding, Smith pleaded guilty to federal criminal felony charges Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal court in Virginia entered a final default judgment and permanent injunction against Ronald W. Smith, Jr . of Vansant, Va., doing business as Safeguard 3030 Investment Club (Safeguard). The court’s order, entered on April 16, 2012, by Judge James P. Jones of the U.S. District Court for the Western District of Virginia, requires Smith to pay a $2,008,251 civil monetary penalty and restitution of $1,064,923. The order imposes permanent trading and registration bans against Smith. The order also requires the two relief defendants, Angela A. Duty Smith , Smith’s w

CFTC | Enforcement Actions: CFTC Orders Rosenthal Collins Group, LLC, a Registered Futures Commission Merchant, to Pay More than $2.5 Million for Supervision and Record-Production Violations

RELEASE: pr6230-12 April 12, 2012 Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against Rosenthal Collins Group, LLC (RCG), a Chicago, Ill.-based registered futures commission merchant, for failing to diligently supervise the handling by its officers, employees, and agents of an account held at RCG in the name of Money Market Alternative, LP (MMA). Enrique F. Villalba, of Cuyahoga Falls, Ohio, used the MMA account in a multi-million dollar commodity futures Ponzi scheme. On March 29, 2010, the CFTC sued Villalba and MMA over their fraudulent scheme (see CFTC Press Release 5801-10 .) According to the CFTC’s order, from April 1, 2006 until April 29, 2009, RCG failed to diligently supervise the handling of the MMA account. Specifically, the

CFTC | Enforcement Actions: CFTC Orders JPMorgan Chase Bank, N.A. to Pay a $20 Million Civil Monetary Penalty to Settle CFTC Charges of Unlawfully Handling Customer Segregated Funds

RELEASE: pr6225-12 April 4, 2012 CFTC Orders JPMorgan Chase Bank, N.A. to Pay a $20 Million Civil Monetary Penalty to Settle CFTC Charges of Unlawfully Handling Customer Segregated Funds CFTC charges relate to JPMorgan’s handling of Lehman Brothers, Inc.’s customer segregated funds Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against JPMorgan Chase Bank, N.A. (JPMorgan) for its unlawful handling of Lehman Brothers, Inc.’s (LBI) customer segregated funds. The CFTC order imposes a $20 million civil monetary penalty against JPMorgan. The order also requires JPMorgan to implement undertakings to ensure the proper handling of customer segregated funds in the future and to release customer funds upon notice and instruction from the CFTC. The CFTC order finds tha

CFTC | Enforcement Actions: Angus Jackson, Inc., et al. / City Credit Capital, (UK) Ltd / Christopher Varlesi d/b/a Gold Coast Futures and Forex.

Angus Jackson, Martin H. Bedick and Martin B. Rosenthal Complaint: CFTC v. Angus Jackson, Inc., et al. CFTC Press Release 6203-12 provides further details on this action.   The CFTC filed a civil enforcement action against Angus Jackson, Inc. of Fort Lauderdale, Fla., Martin H. Bedick, Angus Jackson’s Chief Financial Officer, of Boca Raton, Fla., and Martin B. Rosenthal of Fort Lauderdale, Fla. CFTC Charges Florida Firm Angus Jackson, Inc. and its CFO Martin H. Bedick with Making False, Fictitious, or Fraudulent Statements to the NFA 03/12/2012 03:06 PM EDT ______________________________________________________________________________   The following enforcement action has been released: City Credit Capital, (UK) Ltd. Order: CFTC v. City Credit Capital, (UK) Ltd. CFTC Press Release 6202-12 provides further details on this action.  The CFTC obtained a federal court consent order requiring City Credit Capital, (UK) Ltd., of London, U.K., to pay a $140,0

CFTC | Enforcement Actions: J.P. Morgan Securities LLC Agrees to Pay $140,000 Penalty for Confirming the Execution of a Prearranged Trade on the CBOT

RELEASE: pr6198-12 March 8, 2012 Trade was in ten year U.S. Treasury Note Futures spreads Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order filing and simultaneously settling charges against futures commission merchant J.P. Morgan Securities LLC (JPMS) of New York, N.Y., for confirming the execution of a prearranged trade of ten year U.S. Treasury Note Futures spreads, which was a fictitious sale and noncompetitively executed on the Chicago Board of Trade (CBOT). The CFTC order requires that JPMS pay a $140,000 civil monetary penalty. The order also requires JPMS to cease and desist from further violations of the Commodity Exchange Act (CEA) and CFTC regulations and to comply with certain undertakings. The CFTC order finds that on one occasion in 2010, a JPMS Morgan employee engaged in

CFTC | Enforcement Actions: Federal Court in Illinois Orders Windsor Brokers, Ltd. of Cyprus to Pay $140,000 Civil Monetary Penalty. Cease Soliciting U.S. Customers, and Modify Website

RELEASE: pr6196-12 March 7, 2012 Action part of CFTC’s nationwide sweep against foreign currency firms for failure to register under the 2008 Farm Bill, the Dodd-Frank Act, and CFTC regulations Washington DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent order requiring Windsor Brokers, Ltd. (Windsor), of Limassol, Cyprus, to pay a $140,000 civil monetary penalty to settle CFTC charges. Windsor unlawfully solicited U.S. customers to engage in foreign currency (forex) transactions and operated as a Retail Foreign Exchange Dealer (RFED) without being registered with the CFTC (see CFTC Press Release 6108-11 , September 8, 2011). The consent order, entered on March 6, 2012, by Judge Elaine E. Bucklo of the U.S. District Court for the Northern District of Illinois, permanently bars Windsor fro

CFTC | Enforcement Actions: Charges Alabama Resident John David Stroud and His Companies with Commodity Pool Fraud and Misappropriation

RELEASE: pr6195-12 March 7, 2012 Defendants allegedly stole more than $2.2 million from pool participants and lost more than $1.1 million trading Federal court enters emergency order freezing defendants’ assets and protecting books and records Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed an enforcement action in the U.S. District Court for the Middle District of Alabama charging John David Stroud and his companies, Stroud Capital Management, LLC , TS Capital Partners, LLC , and TS Capital Management, LLC , all of Auburn, Ala., with fraud and misappropriation in operating two commodity pools. On March 7, 2012, U.S. District Court Judge Myron H. Thompson entered an emergency restraining order freezing defendants’ assets. The order also prohibits the defendants from destroying books and records and denying CFTC staff access to such records. The judge set a hearing date for Mar

CFTC | Enforcement Actions: Order: CFTC v. David Sklena, et al.

RELEASE: pr6189-12 February 27, 2012 Federal Court in Illinois Orders Former Futures Trader David Sklena to Pay over $6.6 Million for Cheating Customers Court permanently bars Sklena from futures industry Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal court order requiring former Chicago Board of Trade (CBOT) floor trader and registered floor broker David Sklena of Skokie, Ill., to pay a disgorgement and civil monetary penalty of $6,608,750 for aiding and abetting another trader’s scheme to cheat customers who placed orders in Five-Year Treasury Note futures contracts. The court’s order, entered February 10, 2012, by Judge Virginia M. Kendall of the U.S. District Court for the Northern District of Illinois, stems from a CFTC complaint filed in January 2008, charging

CFTC | Enforcement Actions: CFTC Orders Iowa Resident Jeffrey J. Kinseth and His Company, Virtual Vision Inc., to Pay More than $1 Million in Restitution and Penalties in Fraud Action

The CFTC filed and simultaneously settled charges against Jeffrey J. Kinseth of Cedar Rapids, Iowa, and his Iowa-based company, Virtual Vision Inc., for fraudulently soliciting individuals to participate in a pooled investment vehicle, misappropriation of investor funds, and issuance of false statements to conceal trading losses and fraud.   CFTC Orders Iowa Resident Jeffrey J. Kinseth and His Company, Virtual Vision Inc., to Pay More than $1 Million in Restitution and Penalties in Fraud Action

CFTC | Enforcement Actions: Shaw & Co. LP / Aaron Klein with a simultaneous settled charges.

The following enforcement action has been released: D.E. Shaw & Co. L.P. Order: CFTC v. D.E. Shaw & Co. L.P. CFTC Press Release 6186-12 provides further details on this action.

CFTC | Enforcement Actions: CFTC Charges Mitchell Brian Huffman of North Carolina with Operating a Fraudulent $3.2 Million Commodity Pool Scheme

  RELEASE: pr6183-12 February 17, 2012 CFTC Charges Mitchell Brian Huffman of North Carolina with Operating a Fraudulent $3.2 Million Commodity Pool Scheme Huffman allegedly misappropriated participants’ funds for personal uses, such as purchasing automobiles, personal travel, luxury vacations, and making charitable contributions Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a complaint in federal court in North Carolina, charging defendant Mitchell Brian Huffman of Charlotte, N.C., with operating a fraudulent commodity pool scheme that defrauded participants of more than $3.2 million in connection with exchange-traded commodity futures contracts. Huffman has never been registered with the CFTC. From at least August 2006 to March 11, 2011, Huffman allegedly solicited pro

CFTC | Enforcement Actions: Georgia Federal Court Enters Order for Permanent Injunction against Joseph L. Autry, Jr. and His Company, Autry Capital Management LLC, for Commodity Fraud

RELEASE: pr6179-12 February 15, 2012 Autry also was sentenced to 27 months in prison in a related criminal action Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced that it obtained a federal court summary judgment order for a permanent injunction against CFTC defendants Joseph L. Autry, Jr. and his company, Autry Capital Management LLC (ACM), both of Statesboro, Ga. The order imposes permanent trading and registration bans and a $1,000 civil monetary penalty on Autry and ACM. The court noted that in a related criminal action on July 21, 2011, Autry was sentenced to 27 months in prison and required to pay $155,200 in restitution to defrauded customers ( U.S. v. Autry, 6:10-cr-22, Doc 32 ). The order, entered by Judge B. Avant Edenfield of the U.S. District Court for the Southern District of Georg

CFTC | Enforcement Actions: CFTC Charges GID Group, Inc., Rodney and Roger Wagner with Fraud and Misappropriation in Connection with a $5.5 Million Forex Ponzi Scheme

The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint in the U.S. District Court for the Northern District of Texas, against GID Group, Inc. (GID), a Texas corporation, and its agents and officers, brothers Rodney and Roger. The defendants, both of Grand Prairie, Texas, were charged with operating a fraudulent off-exchange foreign currency (forex) ‘Ponzi” scheme in which they solicited and accepted approximately $5.5 million. CFTC Charges GID Group, Inc., Rodney and Roger Wagner with Fraud and Misappropriation in Connection with a $5.5 Million Forex Ponzi Scheme

CFTC | Enforcement Actions: CFTC Press Release 6128-11 | Complaint: CFTC v. Michael Justin Hoopes

The following enforcement action has been released: Michael Justin Hoopes Complaint: CFTC v. Michael Justin Hoopes Order: CFTC v. Michael Justin Hoopes CFTC Press Release 6128-11 provides further details on this action.

CFTC | Enforcement Actions: CFTC Charges Texas Residents Linda Harris, Chance Harris and Two of Their Companies with Solicitation Fraud, Misrepresentation, and Misappropriation in Multi-Million Dollar Forex Scheme

  The CFTC filed a complaint in the U.S. District Court for the Northern District of Texas, Dallas Division, charging Linda Faye Harris, Chance Domel Harris, CDH Forex Investments, LLC and CDH Global Holdings, LLC, all of Flower Mound, Texas, with solicitation fraud, making false statements, and misappropriation of investors’ funds in connection with the trading of off-exchange foreign currency (forex) contracts. For Full Information Click: CFTC Charges Texas Residents Linda Harris, Chance Harris and Two of Their Companies with Solicitation Fraud, Misrepresentation, and Misappropriation in Multi-Million Dollar Forex Scheme

CFTC | Enforcement Actions, CFTC Obtains Default Judgment against North Carolina Foreign Currency Firm Barki LLC in a $38 Million Ponzi Scheme

RELEASE: pr6123-11 October 11, 2011 Consent Order Requires Relief Defendant Rhonda Kramer to Disgorge Assets Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that the U.S. District Court for the Western District of North Carolina entered an order of default judgment and permanent injunction against Barki, LLC of Mint Hill, N.C. The order, entered on September 30, 2011, stems from a CFTC enforcement action filed on March 17, 2009 that charged Barki and Bruce C. Kramer (Kramer) with fraudulent solicitation and misappropriation in a $38 million leveraged foreign currency (forex) Ponzi scheme perpetrated by Kramer (see CFTC New Release 5635-09, March 18, 2009). The court’s order imposes restitution of $19,960,649 and a civil monetary penalty of $20,944,707 on Barki and imposes permanent tra

Federal Court Orders Convict Perry Jay Griggs and His Wife to Pay $2.1 Million Civil Penalty for Multi-Million Dollar Commodity Pool Fraud and Misappropriation: CFTC | Enforcement Actions

RELEASE: pr6120-11 6120-11 Federal Court Orders Convict Perry Jay Griggs and His Wife to Pay $2.1 Million Civil Penalty for Multi-Million Dollar Commodity Pool Fraud and Misappropriation In a related criminal proceeding, Perry Griggs sentenced to 87 months imprisonment, and his wife Rachelle sentenced to 48 months imprisonment. Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent order requiring defendants Perry Jay Griggs, his wife, Rachelle Griggs, and their company, Aloha Trading Company, Inc. (Aloha), all of Las Vegas, Nev., to jointly and severally pay a $2.1 million civil monetary penalty to settle CFTC charges that they operated a multi-million dollar commodity futures Ponzi scheme (see CFTC Press Release 5929-11, October 29, 2010). The order, entered on September 30, 2011,