Grand Island, Nebraska resident Grace Reisinger and her company, ROF Consulting, LLC, have been ordered to pay over $1.7 million in restitution and penalties for operating a fraudulent commodity pool scheme, the Commodity Futures Trading Commission (CFTC) announced. The final judgment was entered by U.S. District Court Judge Joan B. Gottschall of the Northern District of Illinois on October 4, 2017.
Reisinger and ROF were found liable for futures fraud, options fraud, and violations of regulations governing Commodity Pool Operators (CPOs), including failing to register with the CFTC. A jury delivered a verdict against Reisinger on all charges on September 13, 2016, following a complaint initially filed by the CFTC in June 2011.
The scheme, which ran from at least February 28, 2005, to October 26, 2009, allegedly solicited approximately $4 million from investors located in the United States, Australia, and even a church in Tonga. Reisinger made false claims to investors, including that she was exempt from CFTC registration requirements, that the pool only accepted funds from qualified investors, and that the minimum investment was $5 million. She also failed to provide required account statements and reports to pool participants.
The court order requires Reisinger to pay $497,893.88 in restitution to defrauded investors and disgorge $153,355.04. ROF Consulting, LLC, is required to disgorge $344,108.30. Additionally, a combined $1,105,917.02 in civil monetary penalties has been imposed on both Reisinger and her company. Reisinger is permanently barred from registering with the CFTC and trading in any commodity interests.
The CFTC emphasized that recovery of funds for victims is not guaranteed, as wrongdoers may lack sufficient assets. The agency stated it will continue to pursue accountability for those who harm commodity market participants. A default judgment was previously entered against ROF in September 2015, permanently enjoining the company from engaging in commodity trading activities. The court denied Reisinger’s motion for a new trial, finding ample evidence to support the jury’s verdict.
The CFTC acknowledged the assistance of the Australian Securities and Investment Commission (ASIC), the National Futures Association, and the U.S. Attorney’s Office for the Western District of North Carolina (Charlotte office) in the investigation.
Source: CFTC.gov
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