CFTC v. Christopher D. Dailey et al., Case No. 12 CV 1834 (D. Tex.) The CFTC announced on July 11, 2012, the filing of an enforcement action, charging Christopher D. Daley and his firm, TC Credit Service, LLC (“TCCS”) with operating a commodity pool scheme that fraudulently solicited and accepted about $1.4 million from the public. Daley was the sole owner and employee of TCCS. On June 19, 2012, the U.S District Court in Texas issued an emergency order under seal, freezing the defendants’ assets and prohibiting the destruction of documents and records.
From January 2010 through November 2011, Daley and TCCS fraudulently solicited and accepted approximately $1,427,688 from at least 55 members of the public to participate in a commodity pool to trade crude oil futures contracts. At the time, Daley was not registered with the CFTC as a commodity pool operator nor was he exempt from the requirement to register. In soliciting pool participants, Daley made several misrepresentations and omissions, including: (1) that Daley’s trading in crude oil futures contracts did generate and would generate twenty percent (20%) returns on deposits each month; (2) that the Pool never had a losing month; (3) that the Pool had increased in value by sixty percent (60%) for the year as of March 2011; (4) Daley did not disclose his misappropriation pool participants’ funds; (5) he did not disclose that the pool never maintained any commodity interest account in its own name; (6) Dailey did not disclose that his personal futures trading accounts sustained consistent monthly losses; and (7) Dailey did not disclose that was not properly registered as a commodity pool operator.
The CFTC seeks restitution to defrauded customers, a return of ill-gotten gains, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of federal commodities laws.