Experience, trust and hard work are the reasons
behind our track record of success.

North Carolina man cited in commodities fraud ring

On Behalf of | Feb 24, 2012 | White Collar Crimes |

A Charlotte, North Carolina, man could face federal charges now that the United States Commodity Futures Trading Commission (CFTC) has filed a complaint indicating that the man operated a fraudulent commodity pool. The man’s alleged actions included the acceptance of more than $3 million from 30 various participants all over the United States in exchange-traded commodity futures transactions. Supposedly, the man used the money to make personal purchases and falsely reported profits from trading.

The man, who pleaded guilty to one count of commodities fraud in September of last year, purportedly never revealed to his investors that he was using their money to purchase vehicles and lavish vacations. Supposedly, he had told every investor that he used a proprietary trading program to obtain profits of 100 to 150 percent each year. He also allegedly told investors that his fee would be 20 percent of any profits earned. However, prosecutors alleged that all the information he reported to investors concerning profits and potential dividends was completely false.

Eventually, the man confessed his actions to agents of the FBI in Charlotte. The man — who was never registered with the CFTC — could face extensive legal consequences as a result of his alleged actions. It goes without saying that he may benefit from counsel as he begins to understand his rights and options within the confines of the law. In cases like this, a working knowledge of the law can prove the best method for protecting one’s freedom. Strong defenses can be built to challenge fraud charges.

Source: Hedgeweek, “CFTC charges Mitchell Brian Huffman over fraudulent USD3.2m commodity pool scheme,” Feb. 20, 2012


RSS Feed

FindLaw Network