Delray Beach, Florida – Mark Adrian was penalized by the U.S. Commodity Futures Trading Commission (CFTC) for his involvement in a fraudulent foreign currency (forex) scheme, according to a statement released June 27, 2011. Adrian was ordered to pay a $140,000 civil monetary penalty and is prohibited from future trading activities and CFTC registration.
The CFTC investigation revealed that from approximately 2005 through August 2008, Adrian, while employed by KJW Capital Management, LLC, participated in soliciting over $18.4 million from at least 58 customers for managed forex accounts. KJW promised proprietary trading methodologies, but customers ultimately suffered significant losses.
Instead of disclosing these losses, Adrian fabricated bank records and spreadsheets to deceive customers. The falsified documents inflated account balances, with one example showing a Dresdner Bank statement falsely reporting a $2,488,000 balance when the actual balance was only $181,000. These manipulated records were used to mislead customers and prevent them from withdrawing their funds, resulting in losses of at least $2.3 million.
This CFTC action coincides with a criminal case brought by the U.S. Attorney’s Office for the Northern District of Illinois. Adrian pleaded guilty to wire fraud on October 26, 2010 (Case No. 1:10-cr-00754), and sentencing was scheduled for August 2, 2011. The CFTC acknowledged the assistance of the U.S. Attorney’s Office, the Federal Bureau of Investigation, and the U.K.’s Financial Services Authority in the investigation.
Source: CFTC.gov
Related Federal Cases
- Mark C. Simpson, Child Support Fraud and Drug Conspiracy, Atlanta G… · Florida
- Timothy Roberts, Wire Fraud, Florida 2024 · New York
- David Earl Tucker, Stolen Identity Tax Refund Fraud, Florida 2023 · Illinois
- Mark A. McFarland, Bankruptcy Fraud, IL 2017 · Washington
- David J. Miller, Bank Fraud, Florida 2023 · Illinois
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News