GILBERT, AZ – Cory Williams of Gilbert, Arizona, and his company, Williams Advisory Group, LLC (WAG), have been slapped with a massive default judgment and permanent injunction following a Commodity Futures Trading Commission (CFTC) investigation into a $13 million fraud. Judge John J. Tuchi of the U.S. District Court for the District of Arizona issued the order on March 16, 2018, but it was publicly announced April 12, 2018.
The court found that Williams fraudulently solicited funds from approximately 40 investors – including family, friends, and members of his church community – from April 2014 through December 2016, promising profitable trades in E-Mini S&P 500 futures contracts. Instead, Williams allegedly lost over $8.3 million of the investors’ money through trading in his personal accounts.
The Order mandates that Williams and WAG, jointly, pay $9,725,017 in restitution to the defrauded participants and a civil penalty of the same amount. They are also permanently banned from trading and registering with the CFTC, effectively barring them from future activity in the commodities market.
The CFTC initially filed a complaint against Williams and WAG on May 3, 2017, alleging commodity futures fraud, commodity pool fraud, and failure to register as a commodity pool operator. The investigation revealed that Williams used participant funds to cover personal expenses and distribute approximately $3.4 million to some investors as purported profits, creating a Ponzi-like scheme to mask the losses.
Adding to Williams’ legal woes, the U.S. Attorney’s Office for the District of Arizona has charged him with one count of transactional money laundering. Williams pleaded guilty to this charge on September 27, 2017, and is scheduled to be sentenced on April 16, 2018.
The CFTC warns that victims may not recover all lost funds, as the defendants may lack sufficient assets. The agency emphasizes its commitment to protecting investors and holding fraudsters accountable.
Source: CFTC.gov
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