CFTC Imposes $800K Fine on Investment Firm for Fraudulent Commodity Pool Activity
- David Zier made false representations to clients in connection with a commodity pool he operated.
The US 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) has instigated proceedings and settled charges against Convergent Wealth Advisors, a Maryland-based investment advisory firm. The CFTC Order requires that Convergent pays a $800,000 penalty and is prohibited from further violations the provisions of the Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act and CFTC Regulations.
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The CFTC found that from 2007 to 2014 the late David Zier, in connection with his operation of ZAM, solicited certain clients of Convergent and other individuals for investment in ZAM.
According to the CFTC, Zier solicited Convergent clients for investment in ZAM while he was an agent of Convergent. He also drew upon Convergent resources, such as operations personnel, to execute certain ZAM related client transactions. Accordingly, Convergent, as Zier’s employer, is responsible for Zier’s acts and omissions.
In connection with these solicitations, Zier made false representations as to ZAM’s performance. For example, he represented ZAM as profitable, when it had in fact suffered substantial losses. He also fabricated false performance data that he provided to existing ZAM investors to conceal ZAM’s losses.
According to the CFTC, Convergent had the ability to monitor ZAM’s financial accounts and Zier’s e-mail correspondence relating to ZAM administration, and in 2014, Convergent compliance personnel discovered that some of ZAM’s account statements and the performance reports being provided to Convergent clients who were participants in ZAM were inconsistent.
From 23 December 2010, until Zier’s death, fraudulent solicitations in ZAM totaled nearly $3 million.
The US 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) has instigated proceedings and settled charges against Convergent Wealth Advisors, a Maryland-based investment advisory firm. The CFTC Order requires that Convergent pays a $800,000 penalty and is prohibited from further violations the provisions of the Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act and CFTC Regulations.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
The CFTC found that from 2007 to 2014 the late David Zier, in connection with his operation of ZAM, solicited certain clients of Convergent and other individuals for investment in ZAM.
According to the CFTC, Zier solicited Convergent clients for investment in ZAM while he was an agent of Convergent. He also drew upon Convergent resources, such as operations personnel, to execute certain ZAM related client transactions. Accordingly, Convergent, as Zier’s employer, is responsible for Zier’s acts and omissions.
In connection with these solicitations, Zier made false representations as to ZAM’s performance. For example, he represented ZAM as profitable, when it had in fact suffered substantial losses. He also fabricated false performance data that he provided to existing ZAM investors to conceal ZAM’s losses.
According to the CFTC, Convergent had the ability to monitor ZAM’s financial accounts and Zier’s e-mail correspondence relating to ZAM administration, and in 2014, Convergent compliance personnel discovered that some of ZAM’s account statements and the performance reports being provided to Convergent clients who were participants in ZAM were inconsistent.
From 23 December 2010, until Zier’s death, fraudulent solicitations in ZAM totaled nearly $3 million.