CARLSBAD, CA – Jeffrey Gustaveson, of Carlsbad, California, is facing charges of fraud, misappropriation, and issuing false statements following a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on August 29, 2012, in the U.S. District Court for the Northern District of California.
The CFTC alleges that between January 2010 and July 2010, Gustaveson accepted approximately $2.5 million from at least four individuals to invest in a commodity futures pool. However, instead of utilizing the funds for their intended purpose, Gustaveson reportedly only used around $400,000 for commodity futures trading, resulting in a net loss.
According to the complaint, Gustaveson allegedly diverted approximately $400,000 of the pool funds to cover personal expenses, including hotels, restaurants, and online gambling. To conceal the alleged scheme, Gustaveson is accused of distributing false trading account statements to investors, misrepresenting the pool’s value and reporting fabricated profits while failing to disclose the misappropriation of funds.
While Gustaveson reportedly repaid a portion of the funds when the fraud came to light, he has allegedly failed to return $415,000 to investors despite repeated requests. The CFTC notes that Gustaveson previously admitted in a California state court proceeding to misappropriating investor money and falsifying financial statements related to the alleged activities.
The CFTC is seeking restitution for defrauded customers, the return of any ill-gotten gains, civil monetary penalties, trading and registration bans, and permanent injunctions against future violations of federal commodities laws. The case is being pursued by CFTC staff members Lindsey Evans, Mary Beth Spear, Diane Romaniuk, Ava M. Gould, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
This is a developing story. Further updates will be provided as they become available.
Source: CFTC.gov
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