Libertyville, Illinois – Mark R. Slobodnik has been ordered to pay approximately $370,000 in penalties for his role in a $1.76 million commodity pool fraud, the Commodity Futures Trading Commission (CFTC) announced December 6, 2018. The case stemmed from the operation of Blue Guru, LLC.
Judge Manish Shah of the U.S. District Court for the Northern District of Illinois issued a Consent Order for Permanent Injunction on November 9, 2018, requiring Slobodnik to pay $280,000 in restitution to defrauded investors. He was also ordered to disgorge $45,342.44 in ill-gotten gains and pay a civil monetary penalty of the same amount. Additionally, Slobodnik faces a five-year ban from trading and registering with the CFTC, and is prohibited from violating provisions of the Commodity Exchange Act.
The CFTC initially filed a complaint against Slobodnik, Richard D. Carter, and Blue Guru, LLC on January 12, 2018, alleging fraud, misappropriation, and failure to register. The Order found that from April 2014 until the complaint was filed, Slobodnik knowingly misrepresented the financial performance of Blue Guru to both current and potential investors. Specifically, he claimed the company was actively trading futures contracts – including Dow Jones E-mini and S&P 500 E-mini contracts on the Chicago Mercantile Exchange (CME) – when, in reality, less than two-thirds of the $1.76 million raised was actually used for trading.
Slobodnik promised investors an 8 percent annual return on their investment, plus 50 percent of any gross trading profits. However, the Order revealed Slobodnik was responsible for approximately $249,000 of the $501,000 in total trading losses incurred by Blue Guru. Furthermore, he misappropriated $45,342.44 of investor funds and, when investors requested withdrawals, he and his partner allegedly ignored the requests, delayed responses, and provided false explanations.
The court had previously entered a default order against Blue Guru, LLC on May 1, 2018, ordering the company to pay $1,400,076.78 in restitution, $1,400,076.78 in disgorgement, and a $4,200,230.34 civil monetary penalty. The case against Richard D. Carter remains ongoing.
The CFTC cautioned that victims may not fully recover their losses, as the defendants may lack sufficient assets. The agency stated its commitment to protecting customers and holding wrongdoers accountable. The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Northern District of Illinois and the Federal Bureau of Investigation in the investigation.
Source: CFTC.gov
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