DETROIT, MI – Cedric R. Stanton, president and owner of Millenium Trading Group, Inc. (MTG), is facing charges of fraud following a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on April 10, 2007, in the U.S. District Court for the Eastern District of Michigan. The case, CFTC v. Millenium Trading Group, Inc., Cedric R. Stanton, and Worldwide Clearing, LLC (Civil Action No.: 07-CV-11626), alleges Stanton and MTG fraudulently solicited customers to open commodity trading accounts.
According to the CFTC, Stanton misrepresented the company’s profitability, the risks associated with trading forex futures, MTG’s purported success rate, and the commissions charged to customers. The complaint details claims made by MTG and Stanton that customers could achieve substantial profits in a short timeframe – specifically, turning $200,000 into $1,000,000 within weeks.
The CFTC alleges that MTG employees told potential customers the investment was “safe” and that they “could not lose.” MTG and Stanton are accused of soliciting and accepting over $490,000 from customers and misappropriating approximately $49,000 of a customer’s investment intended for forex futures trading.
The complaint also names Worldwide Clearing, LLC (WWC) of Fort Lauderdale, Florida, as a liable party. MTG operated as an agent of WWC, a registered futures commission merchant. The CFTC alleges WWC was involved in supervising MTG’s activities and actively furthered the fraudulent scheme, even sharing MTG’s trading strategies with other brokers.
The CFTC is seeking preliminary and permanent injunctive relief, restitution for defrauded customers, repayment of any ill-gotten gains, and civil monetary penalties. The case is being pursued by Kenneth W. McCracken, Charles D. Marvine, Lacey Dingman, and Richard Glaser of the CFTC’s Division of Enforcement.
Source: CFTC.gov
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