The Commodity Futures Trading Commission obtained federal court orders requiring a former Long Island, New York resident and his firm to pay more than $288 million for commodity pool fraud operating as a Ponzi scheme. The orders cover three categories: restitution to compensate victims, disgorgement to strip wrongdoers of ill-gotten gains, and civil penalties for deterrence. The scheme involved soliciting investors for a pool supposedly trading futures and options, but the operations were fictitious and used newer participants’ funds to pay earlier ones. This case underscores the importance of verifying operator registration and actual trading activity before investing.
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