Category Archives: Commodities

CFTC Obtains $3 Million Judgment Against Brad Demuzio

CFTC v. Brad L. Demuzio, et al., Case No. 4:12-cv-00183-MHW.  On November 1, 2012, the CFTC announced it obtained a $3 million dollar judgment against Brad Demuzio and his company.  The company defaulted and Demuzio settled.  Without admitting or denying … Continue reading

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CFTC Obtains Order Requiring Joshua Russo To Pay More Than $1.8 Million To Settle Options Fraud

In the Matter of Joshua T.J. Russo, CFTC Docket No. 13-04.  On October 26, 2012, the CFTC announced it obtained an administrative order requiring Joshua Russo to pay restitution of $960,000, a civil monetary penalty of $645,000, and barring him … Continue reading

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CFTC Obtains Default Order Requiring Nicholas Cosmo To Pay $240 Million

CFTC v. Nicholas Cosmo et al., Case No. 2:09-cv-00351-KDW-ARL (E.D.N.Y).  On October 25, 2012, the CFTC announced it obtained a default judgment against Nicholas Cosmo.  Cosmo had engaged in a scheme to solicit investors to invest in bridge loans.  Instead, … Continue reading

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CFTC Orders Robert A. Christy And His Company To Pay $2.6 Million To Settle Forex Fraud

CFTC v. Crabapple Capital Group, LLC and Robert A Christy, Case No. 1:12-cv-1346-RWS (N.D. Ga.).  On October 23, 2012, the CFTC announced it obtained a settlement requiring Robert A. Christy and Crabapple Capital Group to pay more than $2.6 million … Continue reading

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CFTC Charges Recidivist Christopher Smithers With Fraud

CFTC v. Christopher Smithers., Case No. 9:12-cv-81165-KAM (S.D. Florida.).  On October 23, 2012, the CFTC announced fraud charges against Christopher Smithers.  The case concerns Smithers’s representations to customers that his commodity futures trading was profitable when in reality he had … Continue reading

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CFTC Orders David Kaup And His Companies To Pay More Than $1.89 Million To Settle Fraud Charges

In the Matter of David Kaup, et al., CFTC Docket No. 13-03.  On October 23, 2012, the CFTC announced it issued an order settling fraud charges against David Kaup and his companies.  Kaup and his companies solicited investments from individuals by claiming … Continue reading

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CFTC Orders Morgan Stanley To Pay $200,000 For Failure To Supervise Customer Accounts

In the Matter of Morgan Stanley Smith Barney LLC, CFTC Docket No. 13-02.  On October 22, 2012, the CFTC announced it issued an order filing and settling charges that Morgan Stanley failed to diligently supervise the handling of customer accounts.  … Continue reading

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CFTC Charges David Nunn In Illegal Trading Scheme

CFTC v. David M. Nunn, Case No. 12-civ-7786 (S.D.N.Y.).  On October 18, 2012, the CFTC announced it filed charges against David M. Nunn, a former broker of ICE Futures U.S. Inc.  Dunn engaged in non-competitive and fictitious sales of coffee … Continue reading

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CFTC Orders Farr Financial, Inc. to Pay $280,000 to Settle Supervision Failures and Other Violations

In the Matter of Farr Financial, Inc.., CFTC Docket No. 13-01.  On October 10, 2012, the CFTC announced it issued an order settling charges that  Farr Financial Inc. of San Jose, California, failed to properly invest customer segregated funds and … Continue reading

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Commodity Futures Trading Commission Releases Annual Enforcement Results

On October 5, 2012, the CFTC announced the results of its enforcement program for fiscal year 2012 (“FY12”), and they are revealing.  The most significant point is the numbers – the CFTC filed a record-breaking 102 enforcement cases, bringing the … Continue reading

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