IDAHO FALLS, ID – Daren L. Palmer, of Idaho Falls, Idaho, is facing charges of operating a $40 million Ponzi scheme through his unregistered commodity futures pool, Trigon Group, Inc., the U.S. Commodity Futures Trading Commission (CFTC) announced on February 27, 2009.
The CFTC filed a complaint on February 26, 2009, alleging Palmer committed solicitation fraud and misappropriated pool funds for personal expenses and to maintain the Ponzi scheme. He is also accused of sending false account statements to investors and failing to register as a commodity pool operator with the CFTC. A restraining order freezing Palmer’s assets and records was issued by Judge Edward J. Lodge of the United States District Court for the District of Idaho.
According to the complaint, from September 2000 through February 2009, Palmer fraudulently solicited approximately $40 million from over a dozen investors, promising high returns – up to 7% monthly and 20% annually – through commodity futures trading. However, the CFTC alleges Palmer was neither successfully trading nor making legitimate efforts to do so.
Despite collecting at least $40 million from investors, Palmer only deposited $4.5 million into trading accounts. He allegedly used investor funds to pay earlier investors, mimicking the structure of a Ponzi scheme, and for personal expenses, including a new home, credit card bills, and snowmobiles. He also paid himself monthly fees ranging from $25,000 to $35,000, regardless of the pool’s actual profitability.
Palmer concealed the fraud by failing to register with the CFTC and providing fabricated quarterly account statements that falsely reported a pool value exceeding $65 million as of 2008. The CFTC is currently working to locate and account for remaining participant funds.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, and further penalties in its ongoing litigation against Palmer.
Source: CFTC.gov
Related Federal Cases
- Alejandro Hidalgo, Retail Fraud Scheme, Idaho 2016 · Texas
- Two Foreign Nationals, ID Theft Scheme, Los Angeles CA, 2023 · Illinois
- Keith Nelson Cook, Mortgage Fraud Scheme, Salt Lake City UT, 2023 · Michigan
- Sylvester Zugrav, $1.05M Bribery Scheme, FL, 2023 · Illinois
- Larreka Jackson, ID Theft Tax Fraud Scheme, Montgomery AL, 2023 · Idaho
