Christopher A. Engeland, of Glen Rock, Pennsylvania, has been ordered to pay $414,000 in penalties and restitution after defrauding investors through his firm, Pinnacle Forex Group LLC. The U.S. Commodity Futures Trading Commission (CFTC) issued the order on December 3, 2014, finding Engeland and Pinnacle liable for fraud and misappropriation related to a commodity pool trading leveraged foreign currency contracts.
According to the CFTC, from June 2011 to October 2012, Engeland falsely claimed Pinnacle managed tens of millions of dollars in client assets and was registered with the CFTC – both untrue statements. He solicited approximately $414,000 from at least 21 investors, promising participation in a commodity pool focused on forex trading. However, only around $137,000 of the funds were actually deposited into trading accounts.
The CFTC found that Engeland subsequently withdrew the deposited funds and misappropriated them for personal use, including the purchase of automobiles and a natural foods store. To conceal the misappropriation, he fabricated profit and commission statements sent to investors. The total loss to pool participants amounted to approximately $405,378.
Furthermore, Engeland and Pinnacle operated as an unregistered Commodity Pool Operator, violating CFTC regulations. The order mandates that Engeland and Pinnacle cease all further violations of the Commodity Exchange Act and CFTC regulations. They are also permanently banned from registering, trading, and engaging in any other CFTC-regulated activities.
The CFTC cautions that restitution orders do not guarantee recovery of lost funds, as wrongdoers may lack sufficient assets. The agency emphasizes its commitment to protecting customers and holding accountable those who violate commodity trading laws. The CFTC received assistance in this matter from the U.S. Attorney’s Office for the Middle District of Pennsylvania, the Federal Bureau of Investigation, and the National Futures Association.
Source: CFTC.gov
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