BUDA, TX – February 8, 2012 – Christopher B. Cornett, of Buda, Texas, is facing charges of solicitation fraud, false account statements, misappropriation of funds, and failure to register, following a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC). The complaint, filed February 2, 2012, in the U.S. District Court for the Western District of Texas, alleges Cornett defrauded investors through an off-exchange foreign currency (forex) scheme.
According to the CFTC, from June 2008 through October 2011, Cornett solicited approximately $13.99 million from investors for a pooled investment in forex, operating under names including ITLDU, ICM, International Forex Management, LLC, and IFM, LLC. He allegedly misrepresented his trading success, falsely claiming he never experienced a losing month or year, despite significant losses.
Between June 18, 2008, and September 2010, Cornett received roughly $7.07 million from investors. Approximately $1.64 million was redeemed, while $4.17 million was lost through forex trading. During this period, Cornett reportedly only had one profitable month and misappropriated approximately $1.26 million of investor funds. The complaint further alleges that the profit, loss, and account balance statements provided to investors were largely fabricated.
From October 2010 through October 2011, Cornett allegedly solicited an additional $6.95 million, with $2.22 million redeemed. He then allegedly transferred approximately $3.37 million of investor funds to foreign firms, losing all but roughly $1,600 through forex trading. Cornett also failed to register as a commodity pool operator (CPO) despite being required to do so from October 18, 2010, through at least October 13, 2011.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, trading and registration bans, and a permanent injunction against Cornett to prevent further violations of federal commodities laws. The agency received assistance from financial regulators in the U.K., British Virgin Islands, Canada, Germany, and Switzerland during the investigation.
Source: CFTC.gov
Related Federal Cases
- Jason Jarin, Medicaid Fraud and Illicit Transition Procedures, Texas 2023 · Texas
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas, 2012 · Texas
- Christopher Ferguson, PPE Scam, New York NY, 2023 · Texas
- James Pavlounis, Social Security Administration Fraud and Tax Evasion, California 2023 · Texas
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2023 · Texas
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News