The US Commodity Futures Trading Commission (CFTC) today ordered a Texas-based commodity pool operator and his firm to pay$100,000 in a case involving the operation of two unregistered commodities pools, according to a CFTC statement.
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John B. Oden and his company Oden Capital Management, LLC (OCM) were ordered to pay the fine to settle charges that they allegedly operated the two funds while not being registered as Commodity Pool Operators (CPOs). From April to June 2014, John also allegedly acted as a CPO for a part of the relevant period under a falsely claimed exemption from the registration requirement, as required under the Commodity Exchange Act and CFTC regulations.
The complaint also charges Oden with making several misleading representations to actual and prospective investors. Such misrepresentations included that he was exempt from the CFTC’s registration requirement. He also failed to provide pool participants with required monthly account statements and annual reports. He also allegedly utilized promotional materials that showed trading returns based on hypothetical results, without including the required disclosure language.
In its continuing litigation, the CFTC seeks to impose a $100,000 fine, permanent trading and registration bans and a permanent injunction against further violations of the federal commodities laws. The CFTC’s requested penalties also include a five-year ban on solicitation of funds, trading in commodity interests on behalf of others, applying for registration, claiming exemption from registration, or engaging in any activity requiring registration with the US regulator.