WASHINGTON D.C. – Matthew R. White and his firm, M.W. Global Futures LLC (MWGF), have been penalized by the Commodity Futures Trading Commission (CFTC) for defrauding investors out of approximately $1.2 million, the agency announced today. The charges stem from a scheme involving a pooled investment vehicle trading commodity futures contracts, where funds were misappropriated for personal use and the operation ran without required registration.
The CFTC order requires White and MWGF, both based in Florida, to pay a $200,000 civil monetary penalty and $883,974 in restitution to the affected investors. Approximately $602,003 in restitution has already been paid. The order also mandates that they cease and desist from further violations of the Commodity Exchange Act.
According to the CFTC, from February 2014 through July 2018, White and MWGF solicited funds from at least six individuals in Florida and Washington state, promising commodity futures trading opportunities. However, the agency found that White only deposited a portion of the collected funds into trading accounts and that those accounts consistently incurred losses. One account saw no trading activity for 31 months, ultimately losing $687, while another, opened in April 2018, lost $308 after just one month of trading.
Investigators discovered that White misrepresented the profitability of his trading to investors, failing to disclose consistent losses and exaggerating any minor gains. He allegedly provided falsified monthly account statements to at least two investors, falsely indicating profitable trading and positive returns.
The CFTC alleges that White misappropriated $281,970 of investor funds, using the money for personal expenses such as credit card payments, an auto loan, and rent. This amount significantly exceeded any legitimate commissions earned through the limited trading activity.
Prior to the CFTC investigation, White and MWGF had already repaid over $400,000 to investors. An additional $602,003 was repaid during the course of the investigation. The CFTC acknowledged White’s cooperation as a factor in reducing the civil monetary penalty.
In a related criminal case, White pleaded guilty to one count of wire fraud in the U.S. District Court for the Western District of Washington. He is scheduled to be sentenced on April 10, 2020. The case is USA v. White, CR19-253 RSL (W.D.Wash. ECF No. 16).
Source: CFTC.gov
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