Archive

November 8, 2017

The CFPB sued Freedom Debt Relief, the nation’s largest debt-settlement services provider, and its co-CEO Andrew Housser for charging consumers without settling their debts as promised, making customers negotiate their own settlements, misleading customers about fees and the reach of its services, and failing to inform customers of their rights to funds they deposited with the company. The Bureau is seeking seeking compensation for harmed consumers, civil penalties, and an injunction against Freedom and Housser to halt their unlawful conduct. CFPB

November 6, 2017

The Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against Cargill, Inc. (Cargill), of Minnesota, for providing mid-market marks (marks) that concealed from counterparties and its swap data repository (SDR) its full mark-up on certain swaps, in violation of the Commodity Exchange Act (CEA) and Commission Regulations. Specifically, the CFTC Order finds that Cargill provided counterparties and the SDR inaccurate marks which had the effect of concealing up to ninety percent of Cargill’s mark-up. Cargill also failed to diligently supervise its employees in connection with these inaccurate marks, and in connection with inaccurate statements made to swap counterparties. In particular, the CFTC Order finds that Cargill provided marks that concealed its full mark-up because of a concern that providing accurate marks would reduce Cargill’s revenue. The CFTC Order requires Cargill to pay a $10 million civil monetary penalty, cease and desist from violating Section 4s(h)(1) of the CEA and Commission Regulations 23.431(a) and (d), 45.4(d)(2), and 166.3, as charged, and comply with certain remedial undertakings. CFTC

November 2, 2017

– The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Morgan Stanley and Co. Incorporated (Morgan Stanley), a registered Futures Commission Merchant (FCM), for non-compliance with applicable rules governing Part 17 Large Trader reports to the CFTC spanning a ten-year period and affecting thousands of line items of information. The CFTC Order requires Morgan Stanley to pay a $350,000 civil monetary penalty, cease and desist from further violations of the Commodity Exchange Act (CEA) and applicable Regulations, and comply with certain undertakings, including continuing cooperation with the CFTC’s Division of Enforcement in any investigation, civil litigation, or administrative matter related to the subject matter of this action. CFTC

October 12, 2017

The CFPB sued Federal Debt Assistance Association, LLC, Financial Document Assistance Administration, Inc. (both operating under the name “FDAA”), Clear Solutions, Inc., and their owners, Vincent Piccione, David Piccione, and Robert Pantoulis, for falsely presenting the two FDAA companies as being affiliated with the federal government. The Bureau also alleges that FDAA’s so-called “debt validation” programs violated the law by falsely promising to eliminate consumers’ debts and improve their credit scores in exchange for thousands of dollars in advance fees. The lawsuit seeks to end these deceptive practices, obtain redress for harmed consumers, and impose civil money penalties. CFPB

October 11, 2017

– The Commodity Futures Trading Commission (CFTC) today announced the filing of a Complaint on October 2, 2017, in the U.S. District Court for the Central District of California. The CFTC Complaint, filed under seal, charges Defendants Scott Allensworth (d/b/a Capital Growth Group Associates and Cobra Development Group LLP), of Newhall, California; his California company E-Slate, Inc. (d/b/a Cobra Development Group LLP); Robert J. Fusco, of Henderson, Nevada; and David Weddle, of Somerset, Kentucky, with fraudulent solicitation, providing fabricated statements to pool participants, and misappropriation in connection with investments in two separate commodity pools. The Complaint also charges Defendants with registration violations. On October 3, 2017, U.S. District Court Judge Consuelo Marshall signed a Statutory Restraining Order freezing the assets of Allensworth, Fusco, and E-Slate and prohibiting the destruction of their books and records. The district court scheduled a hearing for October 17, 2017 on the CFTC’s motion seeking a preliminary injunction against Allensworth, Fusco, and E-Slate. CFTC

October 10, 2017

The Commodity Futures Trading Commission (CFTC) today announced that the Honorable Joan B. Gottschall of the U.S. District Court for the Northern District of Illinois entered a Final Judgment and Order against Grace Elizabeth Reisinger of Grand Island, Nebraska and her company ROF Consulting, LLC (ROF) for operating a fraudulent commodity pool scheme. The Order, entered on October 4, 2017, requires Reisinger to pay restitution of $497,893.88 to defrauded pool participants and to disgorge $153,355.04. The Order requires ROF to disgorge $344,108.30. The Order also imposes a total of $1,105,917.02 in civil monetary penalties against Reisinger and ROF and permanently bars Reisinger from registering with the CFTC, and from trading in any commodity interest. Furthermore, the Order enters an award of prejudgment interest and holds Reisinger liable for ROF’s violations of the Commodity Exchange Act and liable for the disgorgement and civil monetary penalty amounts as the controlling person of ROF. CFTC

September 29, 2017

– he Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Logista Advisors LLC (Logista), a crude-oil-trading firm based in Houston, Texas. The Order finds that, from approximately September 2013 through October 2014, Logista failed to diligently supervise the handling by its employees and officers of commodity interest accounts and other activities relating to Logista’s business as a CFTC registrant, particularly in connection with its former employee’s improper crude oil futures trading on a foreign exchange and Logista’s response to the exchange’s inquiry into that trader’s misconduct. Logista is registered with the CFTC as a Commodity Trading Advisor and Commodity Pool Operator. The Order requires Logista to pay a $250,000 civil monetary penalty and cease and desist from violating the CFTC Regulation governing diligent supervision. CFTC

September 29, 2017

The Commodity Futures Trading Commission (CFTC) on September 28, 2017, filed a civil enforcement action in the U.S. District Court for the Southern District of New York against Defendants Hasan Sarwar a/k/a Alexander Sarwar (d/b/a Profit Management Int) of Rancho Cucamonga, California, and his spouse Rachida Elfrimi (d/b/a Profit Management). The CFTC Complaint charges the Defendants with defrauding commodity pool participants, making Ponzi-style payments to pool participants from other participants’ funds, comingling of pool funds, and failing to register with the CFTC as Commodity Pool Operators, as required. CFTC

September 28, 2017

The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Morgan Stanley & Co. LLC (MSCO), a Delaware limited liability company headquartered in New York City, for failing to diligently supervise the reconciliation of exchange and clearing fees with the amounts it ultimately charged customers for certain transactions on the CME Group, ICE Futures US, and other exchanges. MSCO is registered with the CFTC as a Futures Commission Merchant and a provisionally registered Swap Dealer. The CFTC Order requires MSCO to pay a $500,000 civil monetary penalty and cease and desist from violating the CFTC Regulation governing diligent supervision. CFTC

September 28, 2017

The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Connecticut-based Tillage Commodities, LLC (Tillage), a Commodity Pool Operator (CPO), for failure to supervise its fund administrator’s operation of the commodity pool’s bank account containing pool participants’ funds. Tillage has been registered as a CPO with the CFTC since 2013, with its principal office located in Stamford, Connecticut. The CFTC Order requires Tillage to pay a $150,000 civil monetary penalty and to cease and desist from further violations of the Commodity Exchange Act, as charged. CFTC