The latest CFTC announcement achieved the revocation of the registrations of Veruus Wealth Management LLC, a previously registered Commodity Trading Advisor (CTA) and Commodity Pool Operator (CPO) involved in running a managed Forex account offering, after the CFTC had notified the company of its intent to revoke its registrations on August 21, 2013.
The grounds of the CFTC’s action, according to the press release, was based on how Veruus had engaged in civil theft and conversion of investments in a Veruus managed Forex account (as per CFTC complaint 6668-13 from last August). When the company failed to reply, the agency’s Judgement Officer issued a decision just last month, on January 7, 2014, revoking the firms CPO and CTA registration.
The CFTC notified Veruus on August 21, 2013, of the CFTC’s intent to revoke the company’s registrations on grounds of the above mentioned civil theft (see CFTC News Release 6668-13, August 21, 2013). When the company failed to respond, a CFTC Judgment Officer issued a decision on January 7, 2014, revoking the company’s CPO and CTA registrations.
Related to Prior Court Case and Complaint
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According to the press release, as a basis for revoking the registrations, the Judgment Officer also found that the District Court for the City and County of Denver, Colorado, had entered an order of default judgment against Veruus on November 28, 2012, in a private litigation (DRCK LLC, et al v. Direction Labs, Inc., Veruus Wealth Management, LLC, et al., Case No. 2012CV5305 (Denver Co. D. Ct., 2nd JD, filed August 24, 2012)), where the Plaintiffs had alleged that the Defendants had solicited them to invest in a Veruus managed Forex trading account. The Denver Court also found Veruus liable for the theft and conversion of $339,517.79 in investor funds. The Judgment Officer’s decision became a final order of the CFTC on February 6, 2014, and announced today by the agency.
The Denver-based firm had tried to withdraw its Forex firm status with the NFA in November 0f 2012, but had that withdrawal put on hold – as ongoing litigation and investigations were underway.
There were several CFTC staff involved in the case, from its Division of Enforcement (DoE), including Susan B. Padove, Elizabeth M. Streit, Joy McCormack, Scott R. Williamson, Rosemary Hollinger and Richard B. Wagner.
A busy day for the Commodity Futures Trading Commission press office today, following a number of press releases related to intent to seek revocation of registrations for a number of firms that had prior regulatory actions taken against them by the agency responsible for supervising the U.S. derivatives markets. A full copy of the press release is available on the CFTC’s website.