CFTC FILES TO REVOKE REGISTRATION OF COMMODITY TRADING ADVISOR

FROM:  COMMODITY FUTURES TRADING COMMISSION 
CFTC Files Action to Revoke Registration of Commodity Trading Advisor Prestige Capital Advisors, LLC

Washington, DC- The U.S. Commodity Futures Trading Commission (CFTC) today filed a Notice of Intent (Notice) to revoke the registration of Prestige Capital Advisors, LLC (Prestige) of Charlotte, North Carolina, as a Commodity Trading Advisor (CTA).

The CFTC Notice alleges that Prestige is subject to statutory disqualification from CFTC registration based on an Order of default judgment and permanent injunction entered against Prestige in the U.S. District Court for the Western District of North Carolina on January 25, 2013 (see CFTC Press Release 6615-13). The Order finds that Prestige fraudulently solicited and accepted more than $4.7 million from multiple pool participants for investment in one or more commodity pools that traded among other things, commodities and futures contracts. The Order also finds that Prestige misappropriated pool participant funds, posted false trading returns on a website called BarclayHedge (where fund managers could post unverified historical returns for prospective clients to view), sent false trading results to at least one Prestige pool participant, and issued false account statements. As a result, Prestige was ordered to pay approximately $6.9 million in civil monetary penalties and restitution of over $4.1 million.

CFTC Division of Enforcement staff members responsible for this case are Eugenia Vroustouris, Daniel Jordan, Michael Loconte, Erica Bodin, Rick Glaser, and Richard Wagner.

TRANS GLOBAL INVESTMENTS, LLC SETTLES ALLEGED COMMODITY POOL FRAUD CHARGES

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION

Federal Court in Nevada Orders Charles Leroy Timberlake and Trans Global Investments, LLC to Pay $340,000 to Settle Commodity Pool Fraud Charges

Defendants permanently barred from the commodities industry

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal court order requiring defendants Trans Global Investments, LLC (Trans Global), a Nevada company and unregistered Commodity Pool Operator (CPO), and its President, Charles Leroy Timberlake, a Texas resident, to pay $200,000 in restitution and a $140,000 civil monetary penalty to settle CFTC charges of commodity pool fraud.

The consent order of permanent injunction, entered on January 14, 2013, by Judge Gloria M. Navarro of the U.S. District Court for the District of Nevada, also imposes permanent trading and registration bans against Timberlake and Trans Global and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.

The CFTC had sued Trans Global and Timberlake, along with CIS Commodities LLC of Henderson, Nev., and its founder and president, Allen Nicholas Ward, of Aspen, Colo., on June 29, 2011 (see Related Link: CFTC Press Release 6068-11). As to Timberlake and Trans Global, the CFTC complaint alleged that Timberlake fraudulently solicited at least $220,000 from five individuals for the purpose of trading commodity futures and option contracts through the Trans Global pool. The complaint further alleged that Timberlake falsely represented that he was registered with the CFTC as a CPO when, in fact, he has never been registered with the CFTC in any capacity. Finally, the complaint also alleged that Timberlake made false representations of material facts and issued false statements to Trans Global pool participants regarding the profitability and value of their investments.

The litigation continues as to the remaining defendants.

CFTC CHARGES FLORIDA FIRM AND OWNER WITH FRAUD RELATING TO COMMODITY POOL

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION
CFTC Charges Jose S. Rubio and his Florida firm, Rubio Wealth Management, LLC, with Commodity Pool Fraud
Defendants also charged with misappropriation, false statements, commingling investor funds, and failure to register
Defendants allegedly fraudulently solicited over $1.8 million from at least 21 individuals
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed a civil enforcement action against Jose S. Rubio (Rubio) and Rubio Wealth Management, LLC (RWM) of Surfside and Coral Gables, Fla., respectively. The CFTC complaint charges Rubio and RWM with defrauding investors in connection with operating a commodity pool to trade commodity futures and off-exchange foreign currency (forex) contracts. The CFTC complaint also charges Rubio with making false statements to pool participants, misappropriating pool funds, commingling investor funds with those of RWM, failing to register as a commodity pool operator, and failing to produce documents to the CFTC.

The CFTC complaint, filed June 7, 2012, in the U.S. District Court for the Southern District of Florida, alleges that from at least January 2008 through the present, Rubio and RWM solicited and accepted at least $1.8 million from at least 21 individuals in connection with their commodity pool. According to the complaint, Rubio and RWM lost in excess of $900,000 through trading and misappropriated at least $820,000 of participants’ funds.

Rubio allegedly made misrepresentations when soliciting and accepting pool participants’ funds. Rubio and RWM allegedly misappropriated some of those funds and used some investor funds to repay other investors, in the manner of a Ponzi scheme. The complaint also alleges that Rubio commingled investor funds with those of RWM, failed to register with the CFTC, and failed to produce documents to the CFTC.

The complaint alleges that, to conceal and perpetuate the fraud, Rubio failed to provide annual financial statements to pool participants and provided at least one pool participant with false investment performance documents that failed to disclose trading losses and misappropriation.

In its continuing litigation, the CFTC seeks civil monetary penalties, restitution, trading and registration bans, and preliminary and permanent injunctions against further violations of the federal commodities laws, as charged.

The CFTC appreciates the assistance of the Florida Office of Financial Regulation and the Financial Industry Regulatory Authority.

CFTC Division of Enforcement staff members responsible for this case are Christopher Giglio, David Oakland, Nathan Ploener, Manal Sultan, Lenel Hickson, Steve Obie, and Vincent McGonagle.