CFTC Sanctions a Commodity Pool Operator for Violations

Cody Malosi Wilson, a resident of Idaho Falls has been ordered by the Commodity Futures Trading Commission (CFTC) to pay $150,000. According to the regulator, the defendant is charged for operating a commodity pool without the necessary registrations.

The Offender Operated Several Unregistered Commodity Pools

Additionally, CFTC warned the offender to stop any violations by the authority. According to the findings by the regulator, Wilson operated different commodity pools between August 2015 and October 2018, using different names.

He allegedly demanded funds from investors via the investment schemes, which were not fully registered and authorized by the CFTC.

Also, Wilson did not comply with CFTC regulations as he used accounts in his name to receive funds from the investors. According to the watchdog, the accused did not operate each of the pools as a separate legal entity different from himself, which is a law for such type of business.

The CFTC Issues Stern Warning On Commodity Pool Operators

The CFTC stated that it has issued several advisories on “Commodity Pool Fraud” of this nature in the past.

The CFTC has been very busy recently, as it intensifies efforts to sanction violators of its rulings in the market.

In May, the regulator sanctioned two operators of commodity pools, LJM Funds Management Ltd and LJM Partners Ltd, which operated collectively as LJM. According to the watchdog, they were fined for providing false statements about their losses. Additionally, the chairman of the two firms, Anthony Caine, as well as the Chief Portfolio Manager, Anish Parvataneni was also charged.

Also, last month, the CFTC sanctioned three individuals for their involvement in a massive commodity fraud scheme worth millions of dollars. The commission has also issued stern warnings against the operators, especially the violators and those that are not registered with the financial watchdog.

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