Christopher D. Daley, 41, of Houston, Texas, is facing charges of fraud after the U.S. Commodity Futures Trading Commission (CFTC) filed an enforcement action against him and his firm, TC Credit Service, LLC (doing business as Del-Mair Group, LLC) on July 11, 2012. The case, filed in the U.S. District Court for the Southern District of Texas, alleges Daley operated a fraudulent commodity pool scheme that bilked approximately $1.4 million from at least 55 members of the public.
According to the CFTC complaint, from January 2010 through November 2011, Daley and TCCS fraudulently solicited funds from investors for a commodity pool intended to trade crude oil futures contracts. However, the firm never maintained any commodity accounts in its name. Daley’s personal trading accounts consistently suffered net losses during the same period.
The CFTC alleges Daley misappropriated investor funds, using at least $100,000 for personal expenses like rent and loan payments. Approximately $195,000 was allegedly transferred to his personal bank accounts. Daley is accused of falsely claiming the pool generated 20 percent monthly returns, never experienced a losing month, and had increased in value by 60 percent by March 2011. He also allegedly failed to disclose that he was misappropriating funds, that the pool lacked a proper commodity interest account, and that his personal trading consistently lost money. Furthermore, Daley allegedly issued false account statements to conceal the scheme.
On June 19, 2012, Judge Lynn N. Hughes of the Southern District of Texas issued an emergency order freezing the defendants’ assets and preventing the destruction of records, one day after the CFTC filed its complaint. The CFTC is seeking restitution for defrauded customers, the return of illegally obtained gains, civil monetary penalties, trading and registration bans, and permanent injunctions against future violations of federal commodities laws.
The case is being pursued by CFTC staff members Eugene Smith, Patricia Gomersall, Christine Ryall, Antoinette Chance, Paul Hayeck, and Joan Manley.
Source: CFTC.gov
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