The Commodity Futures Trading Commission (CFTC) has obtained a federal court order in Orange County California, freezing the assets and prohibiting the destruction of documents of an Orange-County commodity trader and his company.
The asset freeze order stems from a CFTC complaint charging both with misappropriating customer funds and concealing trading losses in connection with operating a fraudulent commodity pool.
The complaint alleges that the defendants solicited at least over $400,000 from the public to trade commodity futures contracts through a commodity pool in operation over the past 7 years. It is also alleged that the defendants routinely sent false statements to pool participants and clients, erroneously reflecting profitable trading returns. In addition, the defendants are also charged with failing to register as a commodity pool operator (CPO) and an associated person (AP), in violation of the Commodity Exchange Act.
The CFTC is seeking permanent injunctive relief, the return of funds to defrauded customers, the repayment of ill-gotten gains and civil monetary penalties for each violation of the act. You can expect the Department of Justice, through the United States Attorney’s office, to file criminal charges for fraud, conspiracy and/or money laundering as the investigation continues.
The purpose of the Commodity Exchange Act is to serve the public interests by providing federal regulation of all commodities and futures trading activities. The Act requires all futures and commodity options to be traded on organized exchanges by properly licensed and registered dealers.
Title 7 of the US Code, Chapter 1, section 6 (e.g. The Commodity Exchange Act) makes it unlawful for any person to enter into, execute, confirm the execution of, or to conduct any office or business anywhere in the United States, for the purpose of soliciting or accepting any order for a contract for the purchase or sale of a commodity for future delivery unless—
(1) such transaction is conducted on or subject to the rules of a board of trade which has been designated or registered by the Commission as a contract market or derivatives transaction execution facility for such commodity;
(2) such contract is executed or consummated by or through a contract market; and
(3) such contract is evidenced by a record in writing which shows the date, the parties to such contract and their addresses, the property covered and its price, and the terms of delivery: Provided, That each contract market or derivatives transaction execution facility member shall keep such record for a period of three years from the date thereof, or for a longer period if the Commission shall so direct, which record shall at all times be open to the inspection of any representative of the Commission or the Department of Justice.
If you have been a victim of commodities or securities fraud, you need the assistance of competent trial attorneys working to ensure your rights are protected and that you receive you are made whole. The trial lawyers at The Trial Lab can assist with any commodities and securities fraudulent activities imposed against you. Call TODAY! Do NOT WAIT! The difference between recovery and losing everything sometimes comes down to responding early and conducting a thorough and timely investigation. Call the trial attorneys of The Trial Lab at (562) 452-9522 or email at TGH@TheTrialLab.com.