EDEN PRAIRIE, MN – Christian Robert Mayer, of Eden Prairie, Minnesota, has been penalized by the Commodity Futures Trading Commission (CFTC) for engaging in a fraudulent trading scheme, the agency announced August 10, 2018. Mayer, a registered Associated Person of a Minneapolis-based Commodity Trading Advisor and Introducing Broker, conducted unauthorized trades in cattle, crude oil, and wheat futures contracts between October 29, 2014, and September 28, 2016.
According to the CFTC’s order, Mayer fraudulently transferred profitable unauthorized trades from customer accounts to his personal trading account while simultaneously leaving the losing trades within the customers’ accounts. He then falsely justified these transfers by claiming he had initially placed the trades in the incorrect account through the Futures Commission Merchant’s online portal.
The scheme defrauded customers out of $105,090, representing both the value of losing trades left in their accounts and the profits improperly transferred to Mayer’s personal account. The Minneapolis-based Introducing Broker discovered the misconduct and promptly reimbursed the affected customers with funds provided by Mayer.
As a result of the CFTC’s investigation, Mayer will pay a $100,000 civil monetary penalty and is permanently banned from trading and registering with the CFTC. He is also required to cease and desist from any further violations of the Commodity Exchange Act.
“Introducing Brokers serve an important role in connecting customers to our futures markets,” stated James McDonald, Director of the CFTC’s Division of Enforcement. “But these customers are entitled to trust that the brokers will handle their trades honestly. When the brokers do not—but instead defraud their own customers as respondent did here—the Commission will vigorously pursue that misconduct.”
The case was led by CFTC staff members Luke B. Marsh, George H. Malas, and Paul G. Hayeck.
Source: CFTC.gov
Related Federal Cases
- Svetislav Vujovic, Financial Institution Fraud, Minnesota 2023 · Illinois
- Bryan Reichel, Investment Fraud Scheme, Minnesota 2016 · Minnesota
- Brett C. Lillemoen, USDA Export Credit Guarantee Program Fraud, Minnesota 2007 · Colorado
- Mark Arlin Hammerschmidt, Tax Refund Fraud, Minnesota 2011 · Minnesota
- Aaron James Glende, Access Device Fraud, Minnesota 2016 · New Mexico
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News