CFTC Orders Trader To Pay Back $1M From Commodities Scam
The U.S. Commodity Futures Trading Commission (CFTC) ordered a Florida trader to pay over $1 million he solicited from family and acquaintances for commodities trading.
Trader Pooled $1.2M for Commodity Futures Contracts
From 2014 to 2018, Matthew R. White, a Cocoa Beach resident (and his company, M.W. Global Futures LLC), purportedly solicited approximately $1.2 million for a pooled investment vehicle to trade commodity futures contracts. White allegedly spent about $280,000 of investors’ money on personal affairs.
Money from Commodities Scam Was Used for Personal Investments
As told by the CFTC, White misled people on his profitability and investing success and, in 2017, convinced a prospective investor that he could see returns of 12% per month and that his average annual return was 16.25%. In reality, he had a net loss up to that point, and the highest monthly profit he earned was less than $100 on an account holding about $64,000.
White was never registered with the CFTC, and on February 5, he pled guilty in Washington federal court to one count of wire fraud. He is scheduled to be sentenced on April 10.
Trader Has Been Cooperative with CFTC Investigation
The government stated that White has repaid most of the funds and cited his cooperation with the investigation. Authorities also mentioned that Mr. White identified previously unknown investors and voluntarily turned over several years of statements for his personal bank accounts.
Of the more than $1.2 million collected, White and his company repaid $400,000 as redemptions and purported profits and returned an additional $600,000 to investors after being contacted by the CFTC enforcement division in November 2018. According to his plea agreement, White also agreed to forfeit $282,000 he used on himself.
Of the mor than $1.2 million collected, White and his company repaid $400.000 as redemptions an purported profits and returned an additional $6
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