Chicago, IL – A federal jury has found Grace Elizabeth Reisinger of Grand Island, Nebraska, liable for orchestrating a fraudulent commodity pool scheme that bilked investors out of at least $2.75 million between 2005 and 2008. The verdict, reached after less than 90 minutes of deliberation in the U.S. District Court for the Northern District of Illinois, concludes years of litigation initiated by the Commodity Futures Trading Commission (CFTC).
The CFTC originally filed a complaint against Reisinger and her company, ROF Consulting, LLC (ROF), on June 29, 2011. The agency alleged that Reisinger fraudulently solicited funds from participants in the NCCN commodity pool, failing to adhere to federal commodities laws.
Evidence presented at trial demonstrated that Reisinger operated the NCCN pool without registering as a Commodity Pool Operator (CPO) with the CFTC, a requirement under the Commodity Exchange Act. The jury also determined Reisinger was a controlling person for ROF, making her liable for the company’s violations. ROF did not respond to the initial complaint and a default judgment was entered against it on September 2, 2015, permanently barring the company from engaging in commodity trading activities.
Prosecutors proved that Reisinger made false and misleading statements to investors, claiming exemptions from CFTC registration requirements and falsely asserting that the pool only accepted funds from “qualified eligible persons” (QEPs) with a minimum investment of $5 million. The CFTC argued, and the jury agreed, that Reisinger lacked a reasonable basis to believe these claims were true.
Furthermore, Reisinger filed a notice of exemption with the National Futures Association nearly seven weeks after she began accepting investor funds. The jury found she was ineligible for the claimed exemption and failed to amend her filing despite knowing it was invalid.
Aitan Goelman, Director of the CFTC’s Division of Enforcement, stated the agency is “relentless in pursuing” cases to protect consumers and maintain market integrity.
The CFTC will now petition Judge Joan B. Gottschall to order Reisinger to pay restitution to defrauded investors, disgorge any ill-gotten gains, and pay a civil monetary penalty. The agency also intends to seek permanent trading and registration bans, along with a permanent injunction preventing further violations of commodities laws. The CFTC acknowledged assistance from the Australian Securities and Investment Commission (ASIC) and the National Futures Association in the investigation.
Source: CFTC.gov
Related Federal Cases
- Tony Eugene Lyon, Cattle Scheme Fraud, Texas 2016 · Illinois
- Gilberto Aguilar-Beltran, Methamphetamine Conspiracy, Nebraska 2023 · Illinois
- Brandon Goodsell, Methamphetamine Trafficking, Nebraska 2023 · Illinois
- John W. Rice, Meth Conspiracy, Nebraska 2024 · Illinois
- Jennilee Janae Velez, Cocaine Trafficking, Nebraska 2023 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News