GRAND ISLAND, NEBRASKA – Grace Elizabeth Reisinger, of Grand Island, Nebraska, is facing charges of commodity fraud following a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on June 29, 2011, in the U.S. District Court for the District of Nebraska. The complaint alleges Reisinger and her company, ROF Consulting, LLC, operated a fraudulent commodity pool scheme through NCCN, LLC.
According to the CFTC, from February 28, 2005, to October 26, 2009, Reisinger and ROF fraudulently solicited approximately $4 million from investors in the NCCN pool. The defendants allegedly operated as Commodity Pool Operators (CPOs) without being properly registered with the CFTC, violating the Commodity Exchange Act and related regulations. Reisinger is also accused of falsely claiming an exemption from registration requirements during a portion of the period.
The complaint details several misrepresentations made to both current and prospective investors. These included false claims about being exempt from CFTC registration, assertions that the pool only accepted funds from “qualified eligible persons” (QEPs), and a fabricated minimum investment amount of $5 million. Reisinger and ROF allegedly failed to provide mandatory monthly account statements and annual reports to investors.
Furthermore, the CFTC alleges that Reisinger directed fees paid by investors to an undisclosed “foreign introducing broker” and did not inform participants of this arrangement. The complaint states Reisinger initially operated as the CPO without any registration or claimed exemption, later filing a letter with the National Futures Association (NFA) on June 24, 2005, claiming an exemption under CFTC regulation 4.13(a)(4). The CFTC argues this exemption was invalid as Reisinger could not reasonably believe all pool participants met the QEP criteria.
The CFTC is seeking restitution for defrauded customers, the disgorgement of any ill-gotten gains, a civil monetary penalty, permanent trading and registration bans, and a permanent injunction to prevent further violations of federal regulations. The case is ongoing as of June 30, 2011.
Source: CFTC.gov
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