Chicago, IL – Jay C. Nolan of Wilmette, Illinois, is facing legal action following charges of fraud and misappropriation related to a commodity pool operation, according to a CFTC announcement on March 2, 2010. The U.S. Commodity Futures Trading Commission (CFTC) secured a preliminary injunction against Nolan and his company, Lodge Capital Group, LLC, after alleging the pair fraudulently solicited approximately $3.9 million from at least five individuals.
The complaint, initially filed in January 2010 and detailed in CFTC Press Release 5779-10, accuses Nolan and Lodge Capital Group of making false statements and omitting critical information to investors regarding the performance and profitability of the commodity pool. Specifically, the CFTC alleges the defendants distributed fabricated account statements that misrepresented the value of investor holdings and the overall financial health of the pool.
U.S. District Court Judge Charles R. Norgle of the Northern District of Illinois issued the preliminary injunction, maintaining a previously imposed asset freeze against Nolan and Lodge Capital Group. The injunction also prohibits any further violations of the Commodity Exchange Act. Furthermore, authorities allege Nolan personally misappropriated funds belonging to the pool’s investors.
The CFTC is pursuing a full legal remedy, seeking the recovery of illegally obtained gains, restitution for defrauded investors, civil monetary penalties, and permanent injunctions against both Nolan and his company. This case is being pursued in conjunction with a criminal complaint filed by the United States Attorney’s Office for the Northern District of Illinois and the Federal Bureau of Investigation on November 24, 2009.
The CFTC’s enforcement team includes Diane M. Romaniuk, Ava M. Gould, Mary Beth Spear, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner. No information regarding potential penalties or specific amounts sought was immediately available.
Source: CFTC.gov
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