Jupiter, FL – Eddie Holman Jr. of Port St. Lucie, Florida, was hit with hefty financial penalties and a lifetime trading ban after being accused of defrauding investors through a commodity pool scheme, the Commodity Futures Trading Commission (CFTC) announced on October 5, 2006.
The CFTC filed an administrative order on September 27, 2006, detailing how Holman, operating under the name C-THRU Inc., allegedly solicited funds from the public starting in at least September 2000. Investigators claim Holman falsely told investors the C-THRU pool was generating profits through commodity futures trading. He further allegedly provided fabricated performance statements to pool participants, indicating profitable returns on their investments.
However, the CFTC found that when Holman did engage in trading, it typically resulted in losses, ultimately leaving the pool with a net loss. This conduct, the CFTC alleges, constituted fraud under the Commodity Exchange Act and related regulations.
Beyond misrepresenting trading performance, Holman is accused of commingling pool funds with his personal finances, failing to provide monthly trading statements from the futures commission merchant, and neglecting to maintain required records – all violations of CFTC regulations.
As a result of the CFTC order, Holman is required to pay $146,600 in restitution to five defrauded pool participants. He also faces a $240,000 civil monetary penalty. Furthermore, Holman is permanently prohibited from trading on any registered entity and is barred from applying for registration with the CFTC in the future.
In a separate action, Holman was arrested in September 2006 by the Indian River County Sheriff’s Office and faces criminal charges of two second-degree felonies: an organized scheme to defraud involving more than $50,000, and grand theft, also exceeding $50,000.
The CFTC’s investigation was led by Christine M. Ryall, Patricia Gomersall, Paul G. Hayeck, and Joan Manley of the Division of Enforcement.
Source: CFTC.gov
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