The US-based Commodity Futures Trading Commission, or CFTC, has issued an order for simultaneous filing and settling charges against one Matthew R. White. White and his company, M.W. Global Futures LLC (MWGF), have been accused of fraudulent solicitation of about $1.2 million. This was for a pooled investment vehicle that traded primarily in commodity futures contracts.
Paying Restitution And Penalties
As is the case with these things, White and his company misappropriated more than $280,000 of the funding of the pool participants. For the most part, this was in order to pay for personal expenses. Of course, they’ve also been accused of operating without registration, but that gets outshone with the other issues.
As per the Order’s contents, both MWGF and White himself will have to dock out $200,000 in civil monetary penalties, with a further $883,974 dedicated to restitution. It seems that White is actually planning on coughing up, with $602,003 already being paid out. Why there is an extra $3 in there, none can say, but the Order mandates both White and MWGF to cease and desist from all violations of the Commodity Exchange Act.
Personal Use, But No Luxury Goods
The Order states that that MWGF has started operations at least from February 2014, continuing operations to July 2018. During this time, both MWGF and White had solicited and received various fundings from at least six different pool participants. These participants resided within Washington state, as well as Florida. These participants came on board with the intent of trading in commodity futures contracts. As is the norm with these kinds of cases, White took the participants’ funds, pooled it together, then promptly put it into his personal accounts. From there, he only deposited a segment of the funding into the commodity interest trading market.
Good Promises From Bad Traders
During the years of 2014 to 2018, White traded the segment of the pool participants’ funds, using two commodity interest accounts. Both of these accounts were in his name and, as one should expect from these operations, earned a negative in its trading. The first account accrued a negative balance of $687, held at least 31 months of inactivity during this timeframe, and was closed with the negative balance. The second account was only opened in April 2018, with only a month’s worth of trading to sit on its record. The account closed with a loss of about $308.