Traverse City, Michigan resident Jerry Stauffer is facing charges of fraud following a civil enforcement complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on February 25, 2015. Chief Judge Paul L. Maloney of the U.S. District Court for the Western District of Michigan issued an emergency order on March 3, 2015, freezing Stauffer’s assets and barring him from destroying financial records.
According to the CFTC, Stauffer fraudulently solicited at least $968,000 from the public to participate in a foreign exchange (forex) commodity pool. He allegedly guaranteed monthly returns on investments, claiming profits were generated through forex trading. However, the CFTC alleges Stauffer traded very little forex and instead diverted funds for personal use.
The complaint further states that Stauffer distributed false account statements to pool participants, falsely inflating profits. He also allegedly operated the commodity pool illegally. The CFTC is seeking full restitution for defrauded participants, along with disgorgement of any ill-gotten gains and monetary penalties. Additionally, the agency is pursuing permanent registration and trading bans, and a permanent injunction against future violations of federal commodities laws.
The CFTC’s investigation was conducted with the cooperation of the Civil Division of the U.S. Attorney’s Office for the Western District of Michigan and the Federal Bureau of Investigation. Staff members Eugenia Vroustouris, Michelle Bougas, Kathy Banar, Erica Bodin, and Rick Glaser were responsible for the case.
Customers are encouraged to report suspicious activity to the CFTC via its toll-free hotline at 866-FON-CFTC or through its online tip/complaint portal.
Source: CFTC.gov
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