BOSTON, MA – September 28, 2012 – Commodity fraud charges have been filed against John B. Wilson, of Boston, Massachusetts, following an investigation by the U.S. Commodity Futures Trading Commission (CFTC). The CFTC filed a civil complaint in federal district court alleging Wilson and his company, JBW Capital LLC, fraudulently solicited and obtained at least $1.8 million from approximately 30 investors between July 2007 and May 2010.
According to the complaint filed in the U.S. District Court for the District of Massachusetts, Wilson operated as a Commodity Pool Operator without being properly registered with the CFTC. The alleged scheme involved misrepresenting the value of the investment pool to participants. On September 13, 2008, investors received an email stating the pool was worth approximately $2.5 million, despite a $1 million loss suffered just two days prior on September 11, 2008.
The complaint further details that between September 15 and 16, 2008, the defendants lost nearly all remaining funds. Despite this, Wilson allegedly continued to solicit investments, securing $100,000 from a new participant while failing to disclose the substantial losses. This new investor was provided with a false statement in September 2008, indicating their share of the pool was less than four percent when it was, in fact, approximately 75 percent.
The CFTC alleges that on December 12, 2008, Wilson sent the new participant an email falsely claiming $20,000 in profits, leading the investor to contribute an additional $100,000. In reality, most of the investor’s initial investment had already been lost.
The CFTC is seeking restitution for defrauded customers, recovery of ill-gotten gains, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of federal commodities laws. A related case has also been filed by the Massachusetts Securities Division (Docket No. E-2011-0026).
Source: CFTC.gov
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