CFTC Charges Toby Hunter and Two of His Companies with Fraud and Misappropriation in Multi-Million Dollar Commodity Scheme
Federal court enters order freezing defendants’ assets and prohibiting destruction of books and records. Washington, DC – The U.S. Commodity
Federal court enters order freezing defendants’ assets and prohibiting destruction of books and records.
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal court in Charlotte, N.C., entered an emergency order freezing assets held by defendants Toby D. Hunter of Waxhaw, N.C., and his companies, Prestige Capital Advisors, LLC (Prestige) and D2W Capital Management, LLC (D2W) of Charlotte, N.C. The court’s order, entered by Judge Max O. Cogburn, Jr., also prohibits the destruction of books and records and grants the CFTC immediate access to such documents. The judge ordered Hunter to appear in court on October 3, 2011, for a preliminary injunction hearing.
The order arises out of a CFTC civil complaint filed on September 6, 2011, in the U.S. District Court for the Western District of North Carolina, Charlotte Division. The CFTC’s complaint alleges that, since April 2008, Hunter, Prestige, and D2W fraudulently solicited and accepted funds from the general public to trade pooled investments in commodity futures, options on commodity futures and managed forex accounts. As a result of defendants’ allegedly fraudulent solicitation, at least six individuals invested $4.65 million with the Prestige Multi-Strategy Fund, LP, a pool established by Hunter and Prestige. In addition, the defendants solicited and received $2.36 million in connection with forex trading accounts managed by D2W. Defendants also allegedly misrepresented the profitability of their trading programs by posting false purported returns on a website called BarclayHedge.
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The complaint further alleges that defendants misappropriated some of the Prestige investors’ funds and issued false account statements to investors in both schemes in order to perpetuate defendants’ fraud.
In its continuing litigation, the CFTC seeks a return of ill-gotten gains, restitution to defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws.
The CFTC appreciates the assistance of the National Futures Association and the United Kingdom’s Financial Services Authority.
The CFTC Division of Enforcement staff responsible for this action are Eugenia Vroustouris, Dan Jordan, Michael Loconte, Erica Bodin, Rick Glaser, and Richard Wagner.
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CFTC actions since 18 Oct 2010 (the Dodd-Frank act applied) are quite serious. However, I am very interested to know what are the consequences. For example, Instaforex don’t care as they are based in Russia. Although they were sued by CFTC and listed as SCAM in FPA they still work as usual. This was not the case with several other companies which websites were shut down almost immediately.
Michael, do you think that CFTC can be efficient enough in such actions? Brokers based outside US are somehow intangible in my opinion.
Daniel, last i heard was that Instaforex no longer accepts US clients. Go ahead and try to open an account, you will be rejected. However, i know a few other FX brokers that still do open to US clients and will most likely continue to do so. But im sure the CFTC is still trying to work something up with these remaining few. Michael, I believe one of the first proposals to the CFTC was to ban all US traders from opening accounts abroad but was eventually dismissed. Going after each person that opens an account abroad or already has… Read more »
@Wmirk & Mark – I have tried following up with them, but my feeling is that this will unfortunately be a prolonged process . If it is, then they can forget about anyone using the SG firm in the future .
@Wmirk & Mark – I have tried following up with them, but my feeling is that this will unfortunately be a prolonged process . If it is, then they can forget about anyone using the SG firm in the future .