Gridley, Illinois – Melissa C. Rushton has been ordered to pay a $50,000 penalty and faces lifetime trading bans after settling fraud charges with the U.S. Commodity Futures Trading Commission (CFTC). The federal court order, issued May 30, 2013, also permanently prohibits Rushton from violating anti-fraud provisions of the Commodity Exchange Act and related regulations.
The case stems from a CFTC enforcement action filed November 29, 2011, against Summit Trading & Capital LLC, Melissa Rushton, and her husband, Brant L. Rushton. The CFTC alleged the trio fraudulently operated a commodity pool. Judge James E. Shadid of the U.S. District Court for the Central District of Illinois previously granted summary judgment against Brant Rushton and Summit in February 2013, ordering them to jointly pay approximately $1.6 million in restitution and a $3.2 million civil penalty.
According to the court order, Melissa Rushton held a controlling position within Summit. The CFTC found that she was aware of the fraudulent activity perpetrated by her husband but failed to take action to stop it, allowing the scheme to continue until the agency filed its complaint. While Brant Rushton faced criminal charges in a parallel federal case and pled guilty in July 2012, Melissa Rushton was not criminally charged.
The current order effectively bars Melissa Rushton from any future involvement in commodity trading. Daniel Jordan, Michael Loconte, Erica Bodin, Brian Walsh, Rick Glaser, and Richard Wagner of the CFTC’s Division of Enforcement were responsible for the investigation and prosecution of this matter. The settlement was announced June 3, 2013.
Source: CFTC.gov
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