A California couple and their company have been ordered to pay over $4.9 million in restitution and penalties for defrauding investors with false claims about commodity futures trading strategies, the Commodity Futures Trading Commission (CFTC) announced. Joseph Dufresne, also known as Joseph James, Megan Renkow, also known as Megan James, and their companies, United Business Servicing, LLC and United Business Servicing, Inc., operating as SchoolofTrade.com (SoT), were the subjects of a Consent Order entered by Judge John A. Kronstadt of the U.S. District Court for the Central District of California on November 22, 2017.
The CFTC initially filed an enforcement action against the defendants on September 30, 2016, alleging fraudulent marketing of their trading strategies and systems. The court found that Dufresne, Renkow, and United Business engaged in a pattern of false and misleading statements. Specifically, they falsely claimed substantial annual profits from their trading strategies—hundreds of thousands of dollars—when, in reality, none of their accounts had ever been profitable.
Furthermore, the defendants misrepresented Dufresne’s experience as a trader, claiming he was a successful professional with years of experience and numerous awards. The court found this to be untrue; Dufresne had limited trading experience and no professional recognition or profitable track record. They also falsely presented live trades in a “Live Trade Room,” claiming profits that could not be substantiated by account records.
The Consent Order requires the defendants to jointly and severally pay $3,941,157 in restitution to defrauded investors and a $1 million civil monetary penalty. They are also permanently prohibited from trading in any CFTC-regulated market and from seeking registration or exemption from registration with the CFTC.
The CFTC cautioned that recovery of funds for victims is not guaranteed, as the defendants may lack sufficient assets. The agency stated it will continue to pursue accountability for those who harm commodity trading customers. The case was led by CFTC Division of Enforcement staff members Maura Viehmeyer, Erica Bodin, Alan Edelman, Michael Solinsky and Rick Glaser.
Source: CFTC.gov
Related Federal Cases
- McKenzie Marie Earley, $10M Wire Fraud, C.D. California, 2023 · Pennsylvania
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Alabama
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · Pennsylvania
- Frank Hamilton Sentenced to 5.5 Years for SBA Scam, California, 2023 · Alabama
- Amy Evangelista, Tax Return Fraud, Lathrop CA, 2023 · Alabama
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News