BOSTON, MA – John B. Wilson of Boston, Massachusetts, has been ordered to pay $2.86 million in penalties and is permanently banned from trading and registering with the Commodity Futures Trading Commission (CFTC), following a judgment entered on October 22, 2014, by the U.S. District Court for the District of Massachusetts.
Wilson, along with his company JBW Capital LLC, was found to have violated the Commodity Exchange Act (CEA) through fraudulent practices and failure to register as a Commodity Pool Operator (CPO). The CFTC initially filed a complaint against Wilson and JBW Capital on September 28, 2012.
The court determined that Wilson defrauded investors in a commodity pool by repeatedly misrepresenting the pool’s Net Asset Value (NAV). Specifically, in September 2008, Wilson falsely reported the NAV as $2,475,941, while the actual value was $1,149,628, according to court findings.
The Final Judgment, entered by Judge Richard G. Stearns, imposes a $2.86 million civil penalty, jointly and severally against Wilson and JBW Capital. It also permanently enjoins them from further violations of the CEA and permanently bans them from trading in commodity interests and registering with the CFTC in any capacity.
The CFTC acknowledged the assistance provided by the Massachusetts Securities Division in the investigation. The case was led by CFTC staff members W. Derek Shakabpa, Judith M. Slowly, David W. Oakland, Patryk Chudy, David Acevedo, Lenel Hickson, Jr., and Manal M. Sultan.
Customers are encouraged to report suspicious activity to the CFTC via the toll-free hotline at 866-FON-CFTC (866-366-2382) or through the online tip/complaint submission portal.
Source: CFTC.gov
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