Carl David Wright, of Iron Station, North Carolina, has been ordered to pay a $1 million civil monetary penalty for operating a commodity pool fraud, the U.S. Commodity Futures Trading Commission (CFTC) announced on July 10, 2015. The order, entered by the Honorable Richard L. Voorhees of the U.S. District Court for the Western District of North Carolina, supplements a previous consent order from October 28, 2013, which found Wright committed fraud in connection with a Ponzi scheme.
The CFTC initially filed an enforcement action on June 24, 2013, alleging Wright violated anti-fraud provisions of the Commodity Exchange Act (CEA) by fraudulently soliciting at least $1 million from approximately 16 customers. According to the court, Wright falsely told investors their funds would be invested in commodity futures, but instead misappropriated the money for personal expenses and to pay earlier investors – a hallmark of a Ponzi scheme.
Wright also faced criminal charges stemming from the same conduct. In October 2014, District Judge Robert C. Conrad of the U.S. District Court for the Western District of North Carolina sentenced Wright to four years in prison and ordered him to pay $817,975 in restitution to his victims.
In addition to the $1 million penalty, the court’s orders impose a permanent trading and registration ban on Wright, prohibiting him from further violations of the Commodity Exchange Act. The CFTC cautions that restitution orders do not guarantee recovery of lost funds, as wrongdoers may lack sufficient assets. The agency says it will continue efforts to protect customers and hold accountable those who commit fraud.
The CFTC’s case was supported by the U.S. Attorney’s Office for the Western District of North Carolina. Jennifer E. Smiley, Mary Beth Spear, Ava Gould, Scott Williamson, and Rosemary Hollinger of the CFTC’s Division of Enforcement were responsible for the case.
Source: CFTC.gov
Related Federal Cases
- Michael Smith, AI-Generated Song Fraud, Manhattan NY, 2023 · North Carolina
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2023 · New York
- Tracey Hernandez, Tax Fraud, Burlington NC, 2021-2022 · North Carolina
- No Defendant Name Found, Bank Fraud Scheme, USA, 2022 · New York
- Letitia James, Investment Fraud, New York 2023 · New Hampshire
