BOISE, ID – Daren L. Palmer has been permanently barred from commodity trading and registration after a federal court found him liable for operating a $40 million Ponzi scheme through his company, Trigon Group, Inc. The U.S. Commodity Futures Trading Commission (CFTC) announced December 5, 2012, that Judge Edward J. Lodge of the U.S. District Court for the District of Idaho entered a consent order requiring Trigon Group to disgorge over $20.6 million to the scheme’s victims.
The case originated from a CFTC complaint filed February 27, 2009, alleging solicitation fraud and misappropriation of funds. The CFTC found that Palmer and Trigon solicited funds from at least 57 individuals and entities, starting as early as September 2000, with the promise of investing in commodity futures, specifically S&P 500 index futures contracts. Investors were led to believe the pool was profitable, but the majority of the $40 million in invested funds was misappropriated.
Judge Lodge previously issued a summary judgment order on October 4, 2010, requiring Palmer to disgorge $20.6 million and pay a $20.6 million civil monetary penalty. This latest consent order extends the penalties to include a permanent ban from all commodity-related activity and registration with the CFTC for both Palmer and Trigon Group, Inc.
The CFTC collaborated with the Securities and Exchange Commission (SEC) and the Idaho Department of Finance on this case, with the SEC also pursuing a related action against Palmer and Trigon. The investigation was led by CFTC staff members Alison Wilson, John Dunfee, Mary Kaminski, A. Daniel Ullman, Paul G. Hayeck, and Joan Manley.
The order ensures Palmer and his company are permanently prohibited from violating the anti-fraud provisions of the Commodity Exchange Act.
Source: CFTC.gov
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