A New York man and his company have been slapped with hefty penalties for running a years-long commodity fraud scheme, the Commodity Futures Trading Commission (CFTC) announced Wednesday. Craig L. Clavin and Lighthouse Futures, Ltd. were subject to a consent order entered by the U.S. District Court for the Eastern District of New York, imposing a $370,000 penalty and requiring restitution to defrauded investors.
According to the court order, Clavin and Lighthouse fraudulently solicited at least $345,000 from investors between 2015 and May 2019, falsely claiming to operate a successful commodity pool that would participate in commodities markets. They also falsely asserted they were exempt from CFTC registration requirements. However, the defendants did no actual trading, instead diverting the funds to cover Clavin’s personal expenses – including travel, meals, patio furniture, and debit card purchases – and to pay earlier investors in a Ponzi scheme-like fashion.
The order details that Clavin and Lighthouse sent investors fabricated pool reports and annual statements showing false trading profits, concealing the misappropriation of funds. The court found that Lighthouse operated illegally as an unregistered commodity pool operator and Clavin acted as an unregistered associated person without proper authorization.
The CFTC’s enforcement action, initially filed June 10, 2020, has resulted in a restitution order of $345,000 and a civil monetary penalty of $25,000. Both Clavin and Lighthouse are permanently banned from trading and registering with the CFTC, and are prohibited from future violations of the Commodity Exchange Act (CEA) and related regulations. The restitution amount will be offset by any funds recovered in a parallel criminal case brought by the Suffolk County District Attorney’s Office, which filed an indictment against Clavin and Lighthouse Futures, Ltd. on June 11, 2020.
The CFTC cautioned that victims may not fully recover their losses, as the defendants’ available assets may be insufficient. The agency vowed to continue pursuing accountability for such fraudulent schemes.
Source: CFTC.gov
Related Federal Cases
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2026 · New York
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2023 · New York
- Mark Thompson, Wire Fraud and Conspiracy, New York NY, 2023 · New York
- Attyx CEOs, $275M Solar Panel Installation Fraud, New York NY, 2023 · New York
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News