Tucson, AZ – Anthony Eugene Linton, 41, is facing federal charges of fraud and misappropriation of customer funds following a Commodity Futures Trading Commission (CFTC) enforcement action filed January 11, 2011, in the U.S. District Court for the District of Arizona. The CFTC obtained an emergency court order on January 24, 2011, freezing Linton’s assets and granting access to his financial records.
Linton, operating under the name “The Private Trading Pool,” allegedly ran a Ponzi scheme involving off-exchange foreign currency (forex) trading, defrauding at least 19 customers out of at least $650,000 beginning in October 2007. He is accused of falsely promising investors a 100 percent annual return on their investments and claiming his proprietary software guaranteed profits on all trades.
According to the CFTC complaint, Linton misrepresented the risks associated with forex trading, telling customers there were “no risks whatsoever.” He also allegedly claimed funds were readily accessible and monthly profits would be delivered by check. However, the complaint details consistent net losses on Linton’s actual forex trades, with over 90 percent of customer funds lost.
The CFTC alleges Linton used customer funds for personal expenses, including mortgage, car, and credit card payments. He is also accused of purchasing and selling items on eBay with the stolen funds, converting large sums into cash and storing it at his home, and utilizing new investor money to pay earlier investors – the hallmark of a Ponzi scheme.
The CFTC is seeking rescission of contracts, restitution for defrauded customers, recovery of ill-gotten gains, a civil monetary penalty, and a permanent injunction preventing further violations of federal commodities laws and trading. They are also requesting a full accounting of Linton’s assets and liabilities.
Source: CFTC.gov
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