Hendersonville, TN – Christian Kis is facing legal action after the U.S. Commodity Futures Trading Commission (CFTC) secured a restraining order freezing his assets on October 6, 2006. The order, issued by a federal district court in Tennessee, also prohibits Kis from destroying documents and requires a full accounting of his assets.
The CFTC alleges that Kis fraudulently solicited over $400,000 from investors between March 2003 and January 2006, promising returns through commodity futures trading with his company, Raptor Capital, Inc. According to the complaint, Kis lost all investor funds but concealed these losses by issuing false statements.
Kis reportedly used the internet to solicit investments from individuals in the U.S. and the United Kingdom, pooling the funds into accounts that included a personal trading account. Investors were led to believe their share value in Raptor Capital was increasing due to profitable trades, as indicated in regular account statements, emails, and even falsified IRS Schedule K-1 forms. The CFTC claims these reports were deliberately misleading, showing positive returns when, in reality, Kis was consistently losing money.
Beyond the alleged fraud, the CFTC also claims Kis failed to register with the agency as a commodity trading advisor and commodity pool operator, violating regulatory requirements for disclosure and proper handling of customer funds.
The CFTC is pursuing permanent injunctive relief, restitution for defrauded investors, repayment of any ill-gotten gains, and civil monetary penalties for violations of the Commodity Exchange Act. A hearing on the CFTC’s request for a preliminary injunction is scheduled for October 17, 2006, before U.S. District Court Judge William J. Haynes, Jr. The Tennessee Department of Commerce and Insurance’s Securities Division assisted in the investigation.
Source: CFTC.gov
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