June 11, 2014

The CFTC obtained a default judgment against Michael James Seward, Yan Kaziyev and their company SK Madison Commodities, a Commodity Pool Operator based in New York City, requiring them to pay restitution totaling $1M and a civil penalty of $2.5M for fraudulently soliciting more than $1.3M from members of the public to trade futures in a commodity pool.  Specifically, the defendants were found to have misrepresented their trading practices and historical trading returns and prepared and distributed to pool participants false account statements and performance reports showing huge profits when in reality they were losing money and diverting large amounts of pool participants’ funds for their own use.  CFTC

Tagged in: Fraud in CFTC-Regulated Markets, Misrepresentations,