Anderson, SC – June 25, 2018 – Jody Dupont of Anderson, South Carolina, has been ordered to pay $192,000 in penalties and disgorgement for perpetrating a fraudulent commodity futures day-trading scheme, the Commodity Futures Trading Commission (CFTC) announced today. U.S. District Court Judge Timothy M. Cain entered a Consent Order against Dupont and a Default Judgment against his company, Open Range Trading LLC, also of Anderson.
According to court documents, between March 2012 and September 29, 2016, Dupont and Open Range fraudulently solicited over 175 clients with promises of profits from a day-trading system generating buy and sell signals for futures markets including E-mini S & P 500, Russell 2000, crude oil, and soybeans. The CFTC alleges Dupont and Open Range misrepresented Dupont’s trading experience and the system’s performance.
Specifically, the orders found Dupont and Open Range falsely claimed to be actively trading when they were not, and presented simulated or hypothetical results as actual profits. They allegedly claimed profits between $700 and $13,000 per month from January 2013 to January 2016, despite Open Range never holding a futures account and Dupont losing money in his two personal accounts.
Clients paid between $250 and $25,000 monthly for the trading system and related services, totaling approximately $92,000 paid to Dupont and Open Range. The Consent Order requires Dupont to disgorge the $92,000 in ill-gotten gains and pay a $100,000 civil monetary penalty. He is also permanently prohibited from seeking registration with the CFTC and from trading for five years.
Open Range Trading LLC is jointly and severally liable for the disgorgement and penalty, and is also subject to permanent registration and trading bans. This case stems from a CFTC enforcement action filed on September 29, 2016, alleging fraud and false advertising.
The CFTC’s investigation was led by Camille Arnold, Jon Kramer, Melissa Cavers, David Terrell, Scott Williamson, and Rosemary Hollinger. The South Carolina Attorney General’s Office and the United States Attorney’s office for South Carolina provided assistance.
Source: CFTC.gov
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