New York, NY – March 27, 2014 – A federal judge in Manhattan has frozen the assets of Michael James Seward and Yan Kaziyev following a Commodity Futures Trading Commission (CFTC) enforcement action alleging a $1.3 million futures fraud. Judge Sidney Stein of the U.S. District Court for the Southern District of New York issued an emergency order on March 24, 2014, freezing assets controlled by Seward, Kaziyev, and their companies, SK Madison Commodities, LLC (SKMC) and its successor, SK Madison, LLC.
The CFTC complaint alleges that Seward and Kaziyev, operating through SKMC, fraudulently solicited funds from the public beginning as early as October 2010. They purportedly misled investors about their trading practices and historical returns in a commodity pool. Prosecutors claim the defendants fabricated account statements and performance reports, falsely indicating substantial profits while actually losing money and diverting funds for personal use.
The emergency order also prevents the defendants from destroying records and grants the CFTC immediate access to all relevant documentation. The CFTC is pursuing full restitution for defrauded investors, along with disgorgement of any ill-gotten gains, civil monetary penalties, and permanent bans from trading and registration. A permanent injunction is also being sought to prevent future violations of federal commodities laws.
The U.S. Marshals Service, Middle District of Florida, Tampa Division, assisted in the matter. Daniel Jordan, Michael Loconte, Erica Bodin, Matthew Elkan, and Rick Glaser of the CFTC’s Division of Enforcement are leading the litigation. Investors are encouraged to report suspicious activity to the CFTC via the toll-free hotline 866-FON-CFTC or through the online tip/complaint portal.
This case highlights the CFTC’s ongoing efforts to protect investors from commodity pool fraud, a type of scheme often perpetrated by unregistered individuals and firms. The agency has issued several advisories warning the public about red flags indicating potential fraud.
Source: CFTC.gov
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