The US Commodity Futures Buying and selling Fee (CFTC) has fined Sharief Deona McDowell over $4.7 million for fraud “in reference to choices on commodity futures contracts by a commodity buying and selling advisor (CTA) and for failing to register as a CTA.” The regulator already settled the costs.
In keeping with the official announcement, the regulatory order requires McDowell to pay greater than $2.37 million in restitution and a matched quantity in a civil financial penalty. The commodities market regulator additionally issued a stop and desist in opposition to McDowell, limiting additional violations of American legal guidelines, and likewise imposed everlasting registration and buying and selling bans.
Nevertheless, the regulator added that there isn’t any assure that the regulator can absolutely compensate the victims.
The CFTC’s motion got here after McDowell had already pled responsible final November to a prison case, which is now pending sentencing on 30 June.
A Fraudulent Scheme
The American regulator detailed that McDowell operated Presidential Investments LLC, an organization she based, between October 2018 and about March 2022. Underneath the corporate, McDowell claimed to be engaged in discretionary buying and selling of futures and choices contracts on behalf of the shoppers. She acted as a CTA with out being one. Her whole operation was fraudulent.
The corporate defrauded at the very least 29 people or entities of greater than $2 million. She was even blamed for misappropriating traders’ funds for private use.
In her communication with potential and current traders by way of phone, textual content message, and electronic mail, the regulator additional alleged that McDowell knowingly “made materials misrepresentations and omitted materials information about her use of shopper funds and the earnings purportedly earned by her shoppers.”
McDowell additionally instructed shoppers that the funds transferred to Presidential Investments had been getting used for buying and selling choices and futures contracts on their behalf. Nevertheless, in actuality, she didn’t conduct any buying and selling and “knowingly misappropriated shopper funds for her direct private profit.”
“To hide and perpetuate her fraudulent scheme, McDowell issued fabricated commerce confirmations and updates to shoppers that falsely mirrored worthwhile returns from her supposed buying and selling exercise,” the CFTC added.
The US Commodity Futures Buying and selling Fee (CFTC) has fined Sharief Deona McDowell over $4.7 million for fraud “in reference to choices on commodity futures contracts by a commodity buying and selling advisor (CTA) and for failing to register as a CTA.” The regulator already settled the costs.
In keeping with the official announcement, the regulatory order requires McDowell to pay greater than $2.37 million in restitution and a matched quantity in a civil financial penalty. The commodities market regulator additionally issued a stop and desist in opposition to McDowell, limiting additional violations of American legal guidelines, and likewise imposed everlasting registration and buying and selling bans.
Nevertheless, the regulator added that there isn’t any assure that the regulator can absolutely compensate the victims.
The CFTC’s motion got here after McDowell had already pled responsible final November to a prison case, which is now pending sentencing on 30 June.
A Fraudulent Scheme
The American regulator detailed that McDowell operated Presidential Investments LLC, an organization she based, between October 2018 and about March 2022. Underneath the corporate, McDowell claimed to be engaged in discretionary buying and selling of futures and choices contracts on behalf of the shoppers. She acted as a CTA with out being one. Her whole operation was fraudulent.
The corporate defrauded at the very least 29 people or entities of greater than $2 million. She was even blamed for misappropriating traders’ funds for private use.
In her communication with potential and current traders by way of phone, textual content message, and electronic mail, the regulator additional alleged that McDowell knowingly “made materials misrepresentations and omitted materials information about her use of shopper funds and the earnings purportedly earned by her shoppers.”
McDowell additionally instructed shoppers that the funds transferred to Presidential Investments had been getting used for buying and selling choices and futures contracts on their behalf. Nevertheless, in actuality, she didn’t conduct any buying and selling and “knowingly misappropriated shopper funds for her direct private profit.”
“To hide and perpetuate her fraudulent scheme, McDowell issued fabricated commerce confirmations and updates to shoppers that falsely mirrored worthwhile returns from her supposed buying and selling exercise,” the CFTC added.
