Littleton, Colorado – Michael Gale, 42, was ordered to pay $479,402.35 in restitution and a $750,000 civil penalty after being found liable for commodity futures fraud, the U.S. Commodity Futures Trading Commission (CFTC) announced today, June 26, 2013.
The Consent Order of Permanent Injunction was entered on June 25, 2013, by Senior U.S. District Judge John L. Kane of the District of Colorado. Gale, who operated under the business name Capital Management Group, is permanently banned from trading and registering with the CFTC.
The CFTC initially filed a complaint against Gale on July 25, 2012, alleging he fraudulently operated a commodity futures pool. The complaint detailed accusations of false statements, falsified tax records presented to investors, misappropriation of investor funds, and a failure to register as a commodity pool operator – all violations of the Commodity Exchange Act (CEA).
According to the Order, Gale solicited approximately $900,000 from at least nine investors for his commodity pool. Investigators found that Gale misrepresented his trading history and the pool’s performance, claiming profitability where none existed. Rather than investing the funds as promised, Gale deposited only a small portion into a trading account, diverting the majority to cover business and personal expenses.
To maintain the deception, Gale allegedly continued to falsely report profitable returns and distributed fabricated account statements and tax documentation to both current and potential investors. The CFTC asserts that Gale knowingly made these false claims, aware that his trading was unsuccessful and that he had already misused a substantial amount of the invested money.
Allison Passman, Mary Elizabeth Spear, Ava Gould, Scott Williamson, Rosemary Hollinger, and Richard Wagner of the CFTC’s Division of Enforcement were responsible for the case.
Source: CFTC.gov
Related Federal Cases
- Michael J. Ruffatto Pleads Guilty to Filing False Claim, Colorado, … · Washington
- William Sears, Securities Fraud, Colorado 2016 · Texas
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Pennsylvania
- Michael Smith, Billion-Stream Royalty Heist, New York, 2023 · New York
- Federal Regulators, Lifel, Securities Fraud, California 2020 · New York
