Cincinnati, Ohio – John R. Bullar was ordered to pay over $31 million in restitution and penalties for running a Ponzi scheme and defrauding investors, the U.S. Commodity Futures Trading Commission (CFTC) announced October 20, 2015. Judge Michael R. Barrett of the U.S. District Court for the Southern District of Ohio entered a Final Judgment by Default against Bullar and a Consent Order against his company, Executive Management Advisors L.L.C. (EMA).
The CFTC initially filed a complaint against Bullar and EMA on September 23, 2014, alleging embezzlement, fraudulent solicitation, misappropriation of customer funds, and failure to register as a Commodity Trading Advisor (CTA) and Commodity Pool Operator (CPO). The court found these allegations to be true.
From at least January 2008, Bullar and EMA fraudulently solicited over $8.3 million from at least 40 investors, promising their funds would be used for commodity futures and option contracts. However, the majority of the funds were never traded. Instead, over $6.2 million was embezzled or misappropriated by Bullar to cover personal expenses, property purchases, and to pay earlier investors – a classic hallmark of a Ponzi scheme.
The Orders detail how Bullar and EMA concealed their fraudulent activity by issuing false account statements displaying fictitious profits and balances. They also operated without registering with the CFTC as required. Bullar faces a permanent ban from trading and registration with the CFTC.
In a related criminal case prosecuted by the U.S. Attorney’s Office for the Southern District of Ohio, Bullar pleaded guilty to wire fraud and money laundering. On June 22, 2015, he was sentenced to 100 months in prison and ordered to pay over $6 million in criminal restitution. The CFTC reminds victims that full recovery of lost funds may not be possible.
The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Southern District of Ohio, the Internal Revenue Service-Criminal Investigation (Cincinnati Field Office), and the Ohio Department of Commerce (Division of Securities) in the investigation.
Source: CFTC.gov
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