Articles Tagged with Futures trading fraud

The Commodity Futures Trading Commission (CFTC) today announced that Judge Brian J. Davis of the Middle District of Florida has ordered Defendants Maverick International, Inc. (Maverick), and its principals Edward Rubin and Wesley Allen Brown to pay $8,605,274.92 in combined restitution and civil monetary penalties for commodity futures fraud, commodity pool fraud, and related violations of federal commodity laws.  Maverick purportedly maintains offices in Wilmington, Delaware and Rubin resides in Winnabow, North Carolina.  Brown was a resident of North Myrtle Beach, South Carolina, and is currently incarcerated in Florida, serving a seven and one-half year sentence for securities fraud, embezzlement, and other crimes related to the conduct at issue in the CFTC’s action.

The Orders follow a March 23, 2015, CFTC Complaint alleging that the Defendants engaged in a fraudulent scheme to solicit funds for a purported commodity pool trading futures contracts and precious metals (see CFTC Press Release 7147-15).  According to the Order, Brown used his role as a pastor of a Flagler Beach, Florida, church to defraud church members by convincing them to deposit funds with the Defendants.  In imposing the civil monetary penalty on Brown, the Court considered his “trusted position as a pastor” and his “defrauding of elderly church members.” The restitution and civil monetary penalty awards result from the Court’s entry of a Supplemental Consent Order between the CFTC and Defendants Maverick and Rubin, as well as an Order entering summary judgment against Brown.  Together, the court’s rulings require the Defendants to pay $2,151,318.73 in restitution and a $6,453,956.19 civil monetary penalty.  Of those amounts, Rubin is jointly and severally liable for $500,000 in restitution and $140,000 of the civil monetary penalty, while Maverick is jointly and severally liable for $2,065,178 in restitution and the entire civil monetary penalty.  Brown is jointly and severally liable for the full $8,605,274.92 amount.

The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets.  The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.

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Three major banks, Deutsche Bank, UBS and HSBC have agreed to pay $46.6 million to settle allegations of schemes to manipulate precious metals futures market trading, the Commodity Futures Trading Commission said. Also eight people  charged  have been charged with federal crimes, the Department of Justice announced. Charges included conspiracy, wire fraud, commodities fraud, commodities fraud and spoofing offenses. German banking giant Deutsche Bank AG and its Deutsche Bank Securities will pay a $30 million civil penalty and undertake remedial action, the CFTC said. Some Deutsche Bank traders allegedly “engaged in a scheme to manipulate the price of precious metals futures contracts by utilizing a variety of manual spoofing techniques” and by trading in a manner to trigger customer stop-loss orders.

Jeffrey Newman represents whistleblowers