Knoxville, TN – On March 12, 2009, the U.S. Commodity Futures Trading Commission (CFTC) announced a federal court order freezing the assets of Dennis R. Bolze, of Gatlinburg, Tennessee, and his company, Centurion Asset Management, Inc. (CAM). The order stems from a CFTC complaint alleging a $20 million fraud impacting at least 100 participants in the United States and Europe.
The complaint, filed March 3, 2009, in the United States District Court for the Eastern District of Tennessee, accuses Bolze of fraudulently soliciting commodity pool participants, misappropriating their funds, and issuing false statements. Advanced Traded Services, Inc. (ATS), another company operated by Bolze, was named as a relief defendant, accused of receiving funds obtained through the fraudulent scheme.
According to the CFTC, Bolze operated a Ponzi scheme from at least Spring 2002, using new investments to pay existing participants. He allegedly misrepresented potential profits to investors, claiming annual returns between 15 and 20 percent, and supported these claims with fabricated account statements. Despite raising over $20 million, Bolze’s trading accounts reportedly never exceeded $250,000 in equity, resulting in approximately $800,000 in trading losses.
The CFTC also alleges Bolze failed to disclose a prior criminal conviction. In 2001, he pleaded guilty to four counts of failing to file and pay sales tax, receiving a six-year suspended prison sentence and probation with fines.
The CFTC is seeking permanent injunctions against Bolze, restitution for defrauded participants, repayment of ill-gotten gains, civil penalties, and disgorgement of funds received by ATS. The agency is collaborating with the Securities and Exchange Commission and the Comision Nacional del Mercado de Valores on the case.
The case is being pursued by CFTC staff including Diane M. Romaniuk, Jon Kramer, Michael Tallarico, Mary Beth Spear, Ava M. Gould, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
Source: CFTC.gov
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