Detroit, MI – Andrew M. Middlebrooks and his firm, EIA All Weather Alpha Fund I Partners, LLC, are facing civil charges of commodity fraud filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Eastern District of Michigan. The CFTC alleges a fraudulent scheme to solicit investments in the EIA All Weather Alpha Fund I, LP, a commodity pool, from individuals in the U.S. and internationally.
The complaint details that Middlebrooks and his company allegedly pooled millions of dollars from dozens of investors beginning in mid-2017. The CFTC alleges that Middlebrooks engaged in a pattern of false and misleading statements and omissions to attract and retain investors. These included claims of extraordinary profitability despite catastrophic losses, exaggerating the fund’s assets under management, falsely stating the fund’s financial statements were audited, and fabricating the existence of a qualified advisory board.
According to the complaint, these false claims were disseminated through falsified monthly account statements and fabricated financial reports sent to both current and prospective investors. The CFTC is seeking full restitution for defrauded participants, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA).
This case runs parallel to a civil injunctive action filed by the Securities and Exchange Commission (SEC) on May 18, 2022, in the same court, alleging similar misconduct. The SEC’s action suggests a broader pattern of deceptive practices by Middlebrooks and his firm.
The CFTC’s enforcement team includes Daniel Jordan, James Deacon, Erica Bodin, and Rick Glaser. The agency encourages the public to verify the registration of any investment firm with the Commission before investing and provides resources to report suspicious activity through its toll-free hotline (866-FON-CFTC) or online complaint system.
Source: CFTC.gov
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