M25 AND M37 REGISTRATIONS REVOKED AS TEXAS COMMODITY TRADERS

Whenever there is a market blow-up then ultimately cases of criminal and civil fraud are exposed. Fraud was uncovered duing the last stock market bust, real estate market bubble and, now the commodity prices seem to be falling apart. The following case is an excerpt from the CFTC web site and involves the revocation of registrations for two commodity trading advisors:

“Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) revoked the registrations of M25 Investments, Inc. (M25) and M37 Investments, LLC (M37), of Waxahachie, Texas, as registered Commodity Trading Advisors. The Initial Decision, issued on May 4, 2011 by a CFTC Administrative Law Judge (ALJ), resolves a CFTC statutory disqualification proceeding brought against M25 and M37 on February 23, 2011.

In the Initial Decision, the ALJ entered a default judgment against M25 and M37 and found that M25 and M37 were unfit for registration based upon the entry of an order for permanent injunction, other equitable relief, and for civil penalties on October 25, 2010 in the U. S. District Court for the Northern District of Texas (see CFTC Press Release 5927-10, October 27, 2010).

The federal district court’s October 25, 2010 order found that, from December 2007 to September 2009, the defendants and their representatives fraudulently solicited individuals, often targeting elderly persons through their churches, in West Virginia, Texas, Mississippi, Maryland and other states to trade forex and forex options. The order prohibits M25 and M37 from violating the Commodity Exchange Act as charged and from seeking registration with the CFTC in any capacity, among other sanctions. The district court also ordered M25 and M37, among other defendants, to jointly and severally pay restitution to defrauded customers of $7,404,036.56 and required M25 and M37 to jointly and severally pay a $7.1 million civil monetary penalty.”