EDEN PRAIRIE, MN – Christian Robert Mayer has been slapped with a $100,000 penalty and a lifetime ban from futures trading after admitting to a fraudulent scheme involving unauthorized trades, the Commodity Futures Trading Commission (CFTC) announced today.
The CFTC’s order, filed August 10, 2018, details how 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. Mayer then allegedly transferred profitable trades from his customers’ accounts into his own personal account, while leaving the losing trades to remain in the customers’ accounts.
According to the CFTC, Mayer masked his actions by falsely claiming the trades were initially placed in the wrong account when transferring them through the Futures Commission Merchant’s online portal. This deception allowed him to pocket profits while shielding customers from potential gains.
The scheme came to light when the Introducing Broker discovered the unauthorized activity. They swiftly took action, issuing $105,090 in checks to the affected customers to cover both the losses from the remaining trades and the profits improperly transferred to Mayer’s account. The funds for these reimbursements were provided by Mayer himself.
“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.”
In addition to the financial penalty, Mayer is permanently banned from trading commodities and registering with the CFTC. The order also compels him to cease and desist from any further violations of the Commodity Exchange Act. The case was led by CFTC staff members Luke B. Marsh, George H. Malas, and Paul G. Hayeck.
Source: CFTC.gov
Related Federal Cases
- Seng Xiong, Elder Fraud Scheme, Minnesota 2024 · New Mexico
- Julius Lee Boston, Tax Return Fraud, Minnesota 2012 · Minnesota
- Jeremy J. Fishnick, Wire Fraud, Cedar Rapids IA, 2023 · Washington
- Abel Hernandez-Labra, Passport Fraud, Hampton IA, 2023 · Illinois
- Aaron A. Johnson, Conspiracy to Commit Fraud on Federal Crop Insura… · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News