Chicago, IL – Joshua T.J. Russo, 41, was charged with commodity fraud following a settlement with the U.S. Commodity Futures Trading Commission (CFTC), announced October 26, 2012. Russo fraudulently solicited funds from at least one customer for a fictitious commodity pool and engaged in unauthorized trading, according to the CFTC order.
The CFTC order requires Russo to pay $960,000 in restitution to victims, a $645,000 civil monetary penalty, and disgorge $215,000 in ill-gotten gains. Additionally, Russo is permanently banned from engaging in any activity related to commodities, including trading and registration with the CFTC. The order also permanently prohibits further violations of the Commodity Exchange Act and CFTC regulations.
From approximately March 2007 through April 2011, while working as a registered Associated Person of an independent Introducing Broker, Russo falsely told a customer they would be a general partner in the “Peak Performance Fund, LP” (PPF). He provided the customer with fabricated financial statements and weekly account summaries that significantly inflated the value of their investment.
The CFTC found Russo provided similar misleading account summaries to five other customers. He also executed unauthorized trades in the accounts of eight customers, resulting in approximately $1.7 million in losses. Russo concealed these losses and the unauthorized trading through the false statements. The total amount deposited by the eight customers into trading accounts reached at least $3 million.
In a related criminal case, Russo was charged on October 25, 2012, with a single count of commodities fraud (USA v. Russo, 1:12-cr-00836) in the Northern District of Illinois. His arraignment was scheduled for November 1, 2012. The CFTC collaborated with the U.S. Attorney’s Office for the Northern District of Illinois and the National Futures Association on the investigation.
Source: CFTC.gov
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