GILBERT, AZ – Cory Williams of Gilbert, Arizona, and his firm, Williams Advisory Group (WAG), are facing charges of commodity fraud following a civil enforcement action filed by the U.S. Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the District of Arizona. The CFTC alleges Williams defrauded approximately 40 investors out of at least $13 million through a commodity pool operated by WAG.
The complaint details charges of commodity futures fraud against both Williams and WAG, with Williams also facing accusations of commodity pool fraud and failure to register as a commodity pool operator. Further, the CFTC alleges Williams engaged in prohibited activities, specifically commingling participant funds with his personal finances.
According to the CFTC, Williams targeted individuals within his personal network, including family members, friends, neighbors, and members of his church community in the Phoenix, Arizona area. From April 2014 through December 2016, Williams allegedly solicited and accepted the $13 million to trade E-Mini S&P 500 futures contracts and other commodities.
The CFTC alleges Williams lost the entire $13 million through trading in his personal accounts or by misappropriating the funds. He is accused of falsely claiming to be an experienced and consistently profitable trader to attract investors. In reality, Williams reportedly lost over $8.3 million trading futures contracts in his own name.
The remaining funds, according to the complaint, were used to cover Williams’ personal expenses and to distribute approximately $3.4 million to some investors as fabricated “profits,” operating in a manner consistent with a Ponzi scheme. Williams allegedly sent weekly text messages to participants falsely reporting profits as high as $30,000 per week, despite the investors suffering total or near-total losses.
The CFTC is seeking full restitution for the defrauded investors, disgorgement of any ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction to prevent future violations of federal commodities laws. James McDonald, Director of the CFTC’s Division of Enforcement, stated the agency will “continue to take swift action to stop such fraudulent schemes and to hold fraudsters accountable.”
Source: CFTC.gov
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