Knoxville, TN – On April 7, 2009, a federal court in Tennessee issued a preliminary injunction freezing the assets of Centurion Asset Management, Inc. and Advanced Trading Services, Inc., stemming from a $20 million Ponzi scheme allegedly orchestrated by Dennis Bolze, of Gatlinburg, Tennessee.
Judge Thomas A. Varlan of the Eastern District of Tennessee issued the order on April 1, 2009, prohibiting Centurion from violating the Commodity Exchange Act. The court cited the need to protect investors from further losses and allow the Commodity Futures Trading Commission (CFTC) to carry out its duties.
The CFTC filed a complaint on March 3, 2009, charging Bolze and Centurion with fraud and misappropriation of funds. Authorities allege that for at least six years, Bolze defrauded over 100 investors, misappropriating most of the $20 million invested. Investors were told their money was being invested in S&P 500 and NASDAQ 100 stock index commodity futures, but the funds were allegedly used for personal gain.
Advanced Trading Services, Inc. was named as a relief defendant, accused of receiving improperly obtained funds. The CFTC is seeking a permanent injunction, restitution for defrauded investors, repayment of any ill-gotten gains, and civil penalties.
Bolze was arrested by federal authorities in Pennsylvania on March 12, 2009, related to a parallel criminal complaint. He was in the custody of the U.S. Marshals Service at the time of the preliminary injunction hearing, and the order did not directly address the charges against him.
The case is being prosecuted by CFTC staff including Jon J. Kramer, Diane M. Romaniuk, Michael Tallarico, Mary Beth Spear, Ava M. Gould, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
Source: CFTC.gov
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