The U.S. Commodity Futures Trading Commission (CFTC) announced that it obtained an emergency federal court order freezing the assets of a Los Angeles based commodities trading firm. The defendants are charged with solicitation fraud and misappropriation of customer funds in connection with the operation of a commodity pool. The allegations claim they fraudulently solicited over a million dollars from roughly 100 commodity pool participants to invest in commodity futures, foreign currency (forex), gold and securities.
The CFTC claims that the defendants did not disclose to participants that their funds would be used to trade commodity futures and foreign exchange (forex). Furthermore, the CFTC claims they failed to disclose significant risks associated with such trading. Defendants allegedly misrepresented that participants would not lose their principal, while neglecting to disclose the full exposure to trading losses.
As is customary, the CFTC seeks full restitution to defrauded customers, disgorgement of ill-gotten gains, rescission of contracts, civil monetary penalties, trading and registration bans and permanent injunctions against further violations of federal commodities laws from the defendants. These defendants 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.
If you are a victim of commodities or securities fraud, you need the assistance of experienced and knowlegable attorneys working to ensure your rights are protected and that you receive full compensation for your losses. The trial attorneys at The Trial Lab can assist with any commodities and securities fraud actions against you. Call TODAY! DO NOT WAIT! Call the securities fraud trial attorneys of The Trial Lab at (562) 452-9522 or email at TGH@TheTrialLab.com.
L.A. Commodities Trading Firm Shut Down For Improper Commodity Pool Operations
