Commodities (CFTC)

OptionSellers.Com Suffers Losses After Natural Gas Declines

November 21, 2018 | Silver Law Group

It seemed like a great investment, in natural gas. But like many energy-based investments, there is a considerable volatility involved that’s an uncontrollable variable. In other words, you never know what may happen tomorrow, especially when trading options or using leverage.

Natural gas posted its biggest one-day percentage gain on November 14. The next day, it posted its largest one-day drop in 15 years. According to news stories, OptionSellers.com was betting that natural gas would continue to rise. When it didn’t, everything unraveled, and the company was forced to begin liquidation. Many investors borrowed through margin accounts, some with considerable amounts invested.

Margin-Account-Guidelines-300x200 Tampa, FL-based OptionSellers.com was a commodities trading firm that claimed to be experienced in this type of investment. The firm’s president and head trader, James Cordier, told a recent interviewer, “Our goal is to take an aggressive vehicle and manage it conservatively.” Unfortunately, that’s not exactly what happened. Trading “naked” on margin instead of “covered,” the firm left its investors vulnerable to unlimited exposure, leading to the losses. An article explains that “OptionSellers.com and its principals negligently engaged in a risky trading strategy that was unsuitable for its clients and breached its fiduciary duties to them by putting its interests ahead of its clients.”

CTFC Orders Restitution of $11.9M In Commodities Fraud

October 12, 2018 | Silver Law Group

The Commodity Futures Trading Commission (CTFC) filed orders today that brought and settled cases against two commodities firms engaged in unauthorized trading and two traders attempting to manipulate commodity prices.

In the first case, Iowa-based Kooima & Kaemingk Commodities, Inc. (K&K), Lauren Kaemingk (Kaemingk), and Bradley Kooima (Kooima) were charged with:

Fraud

Rare Diamond Investment Fraud Attorneys – Rare Diamond Investment Fraud

July 25, 2018 | Silver Law Group

Our investment fraud attorneys help victims of precious metal and exotic diamond frauds by con artists who promise quick profits from investing in rare diamonds or other exotic gems. Investors should be wary of any aggressive sales tactics or violations of state or federal securities laws. Bahram-Mirhashemi-Facing-Allegations-of-Elder-Financial-Fraud-300x200-300x200

Possible Fraudulent Sales Pitch Include:

Current news already known to the public such as:

Binary Options- CFTC’s RED List

October 10, 2017 | Silver Law Group

Binaryoptionfraudattorneys.com

CFTC’s RED List

Binary Options fraud is on the rise in recent years as regulators and government agencies continue to receive hundreds of complaints with damages totaling in the millions of dollars in the United States alone. The U.S. Commodity Futures Trading Commission (“CFTC”) has issued a Fraud Advisory concerning Binary Options due to the increased number of victims of these schemes. The CFTC, as part of its efforts to reduce this fraudulent activity, maintains a list of foreign entities that illegally solicit U.S. residents to trade binary options and forex without being registered with the CFTC as required by securities laws. This allows investors to protect themselves against this type of illegal activity.

Binary Options- CFTC Fraud Advisory

October 10, 2017 | Silver Law Group

Binaryoptionlosses.com

Binary Options Fraud

Binary Options fraud is on the rise in recent years as regulators and government agencies continue to receive hundreds of complaints with losses totaling in the millions of dollars in the United States alone. The U.S. Commodity Futures Trading Commission (“CFTC”) has issued a Fraud Advisory concerning Binary Options due to the increased number of victims of these schemes. The CFTC is hoping to educate investors in order to prevent them from falling victim to these schemes.

Cryptocurrency Exchange Bitfinex Suspends Its Operations

August 3, 2016 | Silver Law Group

Just two months after being sanctioned by the U.S. Commodity Futures Trading Commission (CFTC), Hong Kong-based cryptocurrency exchange Bitfinex — one of the largest Bitcoin exchanges in the world — has now halted all its Bitcoin trading operations until further notice, claiming it has suffered a security breach. According to published reports, the alleged security breach involved the theft of $65 million worth of Bitcoin from Bitfinex users. News of the alleged theft has caused the price of Bitcoin to plummet worldwide by more than twenty percent.

In June 2016, the CFTC issued an Order sanctioning Bitfinex for offering illegal off-exchange financed retail commodity transactions in Bitcoin and other cryptocurrencies. In addition, the Order cited Bitfinex as having failed to register with the CFTC before engaging in any commodity transactions. The Order required Bitfinex to pay a $75,000 civil monetary penalty and to cease and desist from future such violations.

According to the CFTC, Bitfinex permitted its users to borrow funds from other users on the platform so they could trade Bitcoins on a leveraged, margined, or financed basis. However, the CFTC alleged that Bitfinex did not actually deliver those Bitcoins to the traders who purchased them and instead held the Bitcoins in deposit wallets that Bitfinex itself owned and controlled.

Where Are the Whistleblower Office Awards?

December 3, 2015 | Silver Law Group

Where Are the Whistleblower Office Awards? on silverlaw.com

Are enough funds being allocated to stop individuals who are preying on US consumers?

In 2010, in response to the economic and financial crisis of 2008, the Dodd-Frank Act was put into place to pay individuals who provided original information or materials that led to enforcement action. Whistleblower offices were opened, giving the strong message to all US companies that if they put into practice business and financial models that prey on the consumer, they would be held accountable.

Significant funds were given to both the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) to create whistleblower offices and distribute awards to whistleblowers that supplied usable and legitimate information. Eligible whistleblowers would be paid between 10-30% of the sanctions collected as a result of the enforcement to which their information led.

Winsome Investment Trust, U.S. Ventures LC, and their Individual Owners Assessed $44 Million Sanction for Commodity Pool Fraud and Misappropriation

July 2, 2014 | Silver Law Group

The U.S. Commodity Futures Trading Commission (CFTC) has obtained a federal court Order imposing $44 million in sanctions against Robert J. Andres of Houston, TX; his company, Winsome Investment Trust (“Winsome”); Robert L. Holloway of San Diego, CA; and his company, US Ventures LC (“US Ventures”); for fraud in operating a commodities futures pool. The sanction includes a civil monetary penalty of over $32 million as well as a restitution award of $12 million to be paid to defrauded investors. The Order also imposes upon the individuals and companies a permanent trading and registration ban.

According to the Order entered by the Honorable Bruce S. Jenkins of the U.S. District Court for the District of Utah, Andres and Winsome (from May 2005 through November 2008) fraudulently solicited and accepted over $50 million from investors who were told that they would be investing in a commodity futures pool operated by Holloway and US Ventures. To garner the investors’ funds, Andres and Winsome purportedly made false statements claiming that the investment program had a successful track record and that each investor would be guaranteed a return of his/her principal plus profits. The Court found those representations to be false, as Holloway and US Ventures’ futures trading actually suffered nearly $11 million in net losses.

The Court went on to conclude that the defendants misappropriated the majority of participant funds to pay investors false “profits” in a manner akin to a Ponzi scheme and that the defendants used investor funds for other improper purposes, such as providing money to Andres’ wife, funding Holloway’s and his wife’s lavish personal expenses (houses, cars, jewelry, etc.), and investing in various unrelated and undisclosed businesses including a business Holloway’s wife ran on eBay. The Court Order explained that Andres and Holloway attempted to conceal the fraud by directing employees to falsify participants’ account records and to falsely represent to investors that the pool funds were trading profitably with virtually no losses during the relevant period.

Silver Law Group Named Commodities Law Firm of the Year by Finance Monthly

June 27, 2014 | Silver Law Group

Silver Law Group is proud to be awarded Commodities Law Firm of the Year by Finance Monthly magazine. According to Finance Monthly, “the Finance Monthly Global Awards reflect the very best of those professionals working in or within the finance industry today. Each winner has demonstrated excellence and stands out as a first among equals in what is a highly competitive sector.”

Silver Law Group routinely represents institutional and retail investors in commodities litigation and arbitration claims. Our attorneys routinely represent investors in claims before the CFTC and NFA arbitration. Amongst other accomplishments, our attorneys obtained confirmation of an NFA arbitration award against a top commodities clearing firm, represented several victims of MF Global and currently represents multiple victims of a Forex trading scheme.

If you have questions about your legal rights, or have been the victim of investment fraud, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or Toll Free at (800) 975-4345.

CFTC Shuts Down another Florida Ponzi Scheme

April 7, 2014 | Silver Law Group

In March 2014, the U.S. Commodity Futures Trading Commission (CFTC) obtained a supplemental Federal Court Order against Queen Shoals Consultants, LLC (“QSC”) and others to jointly pay in excess of five million dollars in penalties for defrauding customers in a currency or Forex trading scheme. None of the Defendants were registered with the National Futures Association or the CFTC. The Judge initially entered a permanent injunction finding that the Defendants defrauded customers in the Forex scheme and ordered the Defendants to pay restitution, amongst other sanctions.

According to a Court Order, a website “lured customers by claiming QSC and others had a ‘vast background in financial services’ with over 20 years of experience in financial services and a staff of experts ready to assist customers.” In truth, the Defendants were not experienced Forex traders and any promises or guarantees about profits were not true. In fact, there were no Forex accounts and the investors were the victim of a Ponzi scheme.

If you have been the victim of a Forex or commodities trading scheme and would like to discuss your legal rights, contact the Silver Law Group. We represent investors on a contingency fee basis in FINRA arbitration, NFA arbitration and state or federal court. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or Toll Free at (855) 755-4799.