Raleigh, N.C. – Michael Anthony Jenkins, 41, was charged with operating a Ponzi scheme that defrauded approximately 377 investors out of $1.79 million, the U.S. Commodity Futures Trading Commission (CFTC) announced November 23, 2012. The federal civil enforcement action was filed in the U.S. District Court for the Eastern District of North Carolina.
Jenkins, the owner and President of Harbor Light Asset Management, LLC (HLAM), allegedly solicited funds from investors between January 2011 and January 2012, promising to invest the money in E-mini S&P 500 futures contracts. However, the CFTC complaint alleges that the majority of the funds were misappropriated.
According to the complaint, Jenkins embezzled $748,827 of investor funds for personal expenses, including trading gold and oil futures, stock index futures, and E-mini futures in his personal accounts. He also used the funds for purchases at department and discount stores, gasoline, cellular phone bills, and airline tickets. Investors were provided with falsified trading spreadsheets and statements that inflated the value of their investments and reported false profits.
The scheme resulted in an estimated loss of $1.3 million in investor funds, comprised of $1.16 million in misappropriated and embezzled funds and $140,000 in trading losses. The CFTC is seeking restitution, the return of all ill-gotten gains, civil monetary penalties, trading and registration bans, and permanent injunctions against Jenkins and HLAM.
In a related criminal case, Jenkins was indicted on three counts of securities fraud by the Securities Division of the North Carolina, Department of the Secretary of State on August 20, 2012, and is currently in custody awaiting trial in Wake County, North Carolina. The CFTC acknowledged the assistance of the North Carolina Securities Division in this matter.
Source: CFTC.gov
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