James D. Crombie of Virginia has been ordered to pay $1.539,540.47 in restitution and penalties for defrauding customers through his former company, Paron Capital Management, LLC. The U.S. Commodity Futures Trading Commission (CFTC) secured a federal court order on November 21, 2013, requiring Crombie to pay $789,540.47 in restitution and a $750,000 civil monetary penalty.
The case, originating from a CFTC complaint filed September 15, 2011, revealed Crombie made false statements and provided falsified documents to the National Futures Association (NFA). He then used these deceptions to solicit funds for Paron Capital Management. The court order also permanently bans Crombie from trading and registering with any regulated entity, and prohibits further violations of the Commodity Exchange Act.
Judge Claudia Wilken of the U.S. District Court for the Northern District of California found that Crombie willfully misled the NFA, both through the submission of false documents and during a subsequent investigation into Paron’s activities. The court also determined that Crombie directed the use of fraudulent promotional materials to attract clients for commodity futures trading.
A prior consent order was entered on September 5, 2012, against Paron Capital Management, but imposed no monetary penalties, acknowledging the company’s cooperation with the CFTC investigation. The CFTC acknowledged the assistance of the NFA in uncovering the fraudulent scheme. The case was led by CFTC staff members Jonathan Robell, Danielle Karst, John Einstman, Dmitriy Vilenskiy, Joan Manley, and Paul Hayeck.
The order was issued November 21, 2013 and announced by the CFTC on November 27, 2013. Crombie’s last known location was Virginia.
Source: CFTC.gov
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