CFTC Charges Executive Management Advisors LLC with Running an $8.3 Mln Ponzi Scheme

According to the charges by the regulator, John R. Bullar, the owner of the company, has been involved in operating an $8.3 million Commodity Pool and a Ponzi scheme alleging to trade Futures and Options.

The U.S. Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) issued an announcement that it has filed a federal civil enforcement suit against Defendants John R. Bullar and his company Executive Management Advisors LLC.

According to the CFTC complaint, the defendants fraudulently defrauded 40 investors of more than $8.3 million while acting as Commodity Pool Operators (CPOs) and Commodity Trading Advisors (CTAs).

The CFTC alleges that the company assured its victims that they were pooling their funds and trading in commodity futures and options markets, while they were actually running a Ponzi scheme. The defendants were never registered with the CFTC as CPOs or CTAs, and provided participants in the alleged pool with false account statements.

Executive Management Advisors LLC and its sole principal Mr. Bullar have been charged with fraud and embezzlement. According to the regulator, they misappropriated participants’ funds, claiming that they were pooled in a managed account to trade futures and options on the commodity markets.

The CFTC claims that only a small fraction of the funds was actually traded. The defendants allegedly operated a Ponzi scheme misappropriating and embezzling approximately $6 million. According to the complaint, Mr. Bullar used funds for his personal expenses, made cash withdrawals, issued checks to himself and transferred money to his personal accounts.

Meanwhile, pool participant funds were allegedly used to pay certain pool participants fictitious trading profits and/or balances as reported on false account statements.

In its complaint, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, as well as permanent injunctions from further violations of the federal commodities laws, as charged.