Showing posts with label CFTC FRAUD ACTIONS. Show all posts
Showing posts with label CFTC FRAUD ACTIONS. Show all posts
Wednesday, April 11, 2012
CFTC SEEKS TO REVOKE REGISTRATIONS OF STRATEGIC RESEARCH LLC
FROM COMMODITY FUTURES TRADING COMMISSION
March 28, 2012
CFTC Seeks to Revoke the Registrations of Illinois Resident Joseph A. Dawson and His Company, Strategic Research LLC
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a notice of intent to revoke the registrations of Illinois residentJoseph A. Dawson (Dawson) and his company, Strategic Research LLC (SR), a registered Commodity Pool Operator (CPO). Dawson is the president and sole principal of SR and has been a registered Associated Person of SR since February 13, 2009.
According to the CFTC’s notice, Dawson is subject to disqualification from registration under the Commodity Exchange Act (CEA) based on his felony conviction for wire fraud, a federal court’s finding that he committed fraud and misappropriation, and a federal court’s entry of a permanent injunction order against him. SR is subject to disqualification from registration under the CEA because Dawson is its principal, according to the notice.
Specifically, the notice states that on March 8, 2011, Dawson pled guilty to three felony counts of wire fraud in violation of 18 U.S.C. § 1343 in United States v. Dawson, a criminal action filed by the U.S. Attorney’s Office for the Northern District of Illinois on Dec. 17, 2009, 09-CR-1037 (N.D. Ill. Dec. 17, 2009). The U.S. District Court for the Northern District of Illinois sentenced Dawson to 54 months of imprisonment and ordered him to pay restitution to his victims.
The notice also states that on April 26, 2011, the U.S. District Court for the Northern District of Illinois entered a consent order of permanent injunction against Dawson in a CFTC anti-fraud action filed on July 20, 2010, against Dawson and his unregistered CPO, Dawson Trading LLC, 10-CV-4510 (N.D. Ill. July 20, 2010) (see CFTC Press Releases 5860-10, July 26, 2010, and 6072-11, July 13, 2011). In that consent order, Dawson admitted that he misappropriated approximately $2.1 million of commodity pool participant funds, fraudulently solicited pool participants, and made material false statements to pool participants in violation of the CEA. The consent order permanently prohibits Dawson from violating the CEA’s anti-fraud provisions.
Tuesday, October 18, 2011
CFTC ANNOUNCES FRAUD ACTIONS
The following excerpt is from the CFTC website:
“The Division’s mission to protect market participants from fraud is reflected by the 55 fraud actions filed in fiscal year 2011 alone, and by the numerous federal court orders obtained by the Division against more than 75 defendants, imposing civil monetary penalties and restitution and disgorgement obligations. In one notable fraud case, CFTC vs Walsh, et al, the Court ordered an initial distribution and return of approximately $792 million to commodity pool investors stemming from an alleged $1.3 billion Ponzi scheme that was the subject of CFTC and Securities and Exchange Commission (SEC) charges in a prior fiscal year.
The Division also took action against so-called gatekeepers, charging an accounting firm and two of its partners in two separate cases, for failing to apply generally accepted auditing standards (GAAS) when conducting audits of futures commission merchants that had produced misstated financial statements. See In the Matter of G. Victor Johnson II, McGladrey & Pullen, LLP and Altshuler, Melvoin & Glasser, LLP, CFTC Docket No. 11-01 (October 4, 2010 ) and In the Matter of David Shane and McGladrey & Pullen, LLP, CFTC Docket No. 11-23 (September 22, 2011).
Foreign Exchange Currency (Forex) EnforcementThe Division of Enforcement filed 23 actions enforcing new regulations that resulted from the Dodd-Frank Act, and that require foreign exchange dealers and introducing brokers to register with the Commission. Separately, and as part of the Division’s prosecution of retail forex fraud, the Division prevailed in a federal jury trial in the United States District Court for the Middle District of Florida, which imposed more than $17 million in sanctions and other relief against Capital Blu Management, LLC and several other defendants.
Cooperating with Law Enforcement PartnersThe Division of Enforcement continues to actively engage in cooperative enforcement with federal and state criminal and civil law enforcement authorities. During FY 2011, more than 70 indictments and convictions were obtained in criminal cases related to CFTC enforcement actions.
The Division also engages in cooperative enforcement with international authorities in a wide range of matters from retail fraud to market manipulation. Requests and referrals to and from foreign authorities continued to grow during FY 2011. The Division handled over 530 international requests and referrals, an approximate 20 percent increase over FY 2010. “
“The Division’s mission to protect market participants from fraud is reflected by the 55 fraud actions filed in fiscal year 2011 alone, and by the numerous federal court orders obtained by the Division against more than 75 defendants, imposing civil monetary penalties and restitution and disgorgement obligations. In one notable fraud case, CFTC vs Walsh, et al, the Court ordered an initial distribution and return of approximately $792 million to commodity pool investors stemming from an alleged $1.3 billion Ponzi scheme that was the subject of CFTC and Securities and Exchange Commission (SEC) charges in a prior fiscal year.
The Division also took action against so-called gatekeepers, charging an accounting firm and two of its partners in two separate cases, for failing to apply generally accepted auditing standards (GAAS) when conducting audits of futures commission merchants that had produced misstated financial statements. See In the Matter of G. Victor Johnson II, McGladrey & Pullen, LLP and Altshuler, Melvoin & Glasser, LLP, CFTC Docket No. 11-01 (October 4, 2010 ) and In the Matter of David Shane and McGladrey & Pullen, LLP, CFTC Docket No. 11-23 (September 22, 2011).
Foreign Exchange Currency (Forex) EnforcementThe Division of Enforcement filed 23 actions enforcing new regulations that resulted from the Dodd-Frank Act, and that require foreign exchange dealers and introducing brokers to register with the Commission. Separately, and as part of the Division’s prosecution of retail forex fraud, the Division prevailed in a federal jury trial in the United States District Court for the Middle District of Florida, which imposed more than $17 million in sanctions and other relief against Capital Blu Management, LLC and several other defendants.
Cooperating with Law Enforcement PartnersThe Division of Enforcement continues to actively engage in cooperative enforcement with federal and state criminal and civil law enforcement authorities. During FY 2011, more than 70 indictments and convictions were obtained in criminal cases related to CFTC enforcement actions.
The Division also engages in cooperative enforcement with international authorities in a wide range of matters from retail fraud to market manipulation. Requests and referrals to and from foreign authorities continued to grow during FY 2011. The Division handled over 530 international requests and referrals, an approximate 20 percent increase over FY 2010. “
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