Daniel K. Steele, of Missouri, has been permanently banned from trading and registration in commodity markets after being found liable for forex fraud, the Commodity Futures Trading Commission (CFTC) announced December 16, 2014. The U.S. District Court for the Eastern District of Missouri entered a Consent Order against Steele and his company, Champion Management International, LLC, following a CFTC complaint filed in September 2013 and amended in July 2014.
Steele solicited at least $1.97 million from at least 24 investors between February 28, 2011, and September 25, 2013, to participate in three foreign currency (forex) pools. The court found that Steele knowingly made false statements to investors regarding trading results, promising a fixed return of 5% per month. He also concealed trading losses, misappropriated approximately $1 million of investor funds, and issued false account statements.
The Order requires Steele and Champion Management to jointly pay $1,544,722.81 in restitution to defrauded investors and a $1 million civil monetary penalty. Additionally, Judy D. Steele, identified as a relief defendant, must disgorge $187,083.58 in ill-gotten gains. The court also found that Steele failed to disclose that the counterparty involved in the forex transactions was not properly registered with the CFTC as a Retail Foreign Exchange Dealer, violating Sections 4o and 4b of the Commodity Exchange Act.
The CFTC cautions that restitution orders do not guarantee recovery of lost funds, as wrongdoers may lack sufficient assets. The agency continues to pursue legal action against individuals and entities engaging in fraudulent commodity trading practices. Assistance was provided by the Missouri Secretary of State, Securities Division, the U.S. Postal Inspection Service, and the Swiss Financial Market Supervisory Authority.
Individuals who suspect fraud are encouraged to contact the CFTC via its toll-free hotline at 866-FON-CFTC or file a complaint online.
Source: CFTC.gov
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