Raleigh, North Carolina – Michael Anthony Jenkins, the owner and president of Harbor Light Asset Management, LLC (HLAM), has been permanently banned from trading and registration in commodity markets following a federal court order issued on February 11, 2014. Judge James C. Fox of the U.S. District Court for the Eastern District of North Carolina found Jenkins and his firm liable for operating a Ponzi scheme that defrauded investors out of at least $1.79 million.
The CFTC initially filed a complaint against HLAM and Jenkins on November 20, 2012, alleging the fraudulent solicitation of funds from approximately 377 individuals, primarily residents of North Carolina. The court order requires Jenkins and HLAM to jointly pay $1,301,406.60 in restitution to the victims and a civil penalty of $3,904,219.80.
According to the court findings, Jenkins used an HLAM Investment Agreement to falsely claim investor funds were being used exclusively for E-mini futures trading and would be transferred to a designated trading account. He then allegedly fabricated trade reports, profits, and inflated investment values through falsified spreadsheets and statements to conceal the scheme and attract further investment.
The court also determined that Jenkins committed embezzlement while acting within the scope of his employment at HLAM. Furthermore, Jenkins failed to register with the CFTC as a Futures Commission Merchant, a violation of federal regulations. The permanent injunction prohibits Jenkins and HLAM from any future violations of the Commodity Exchange Act and CFTC Regulations.
The CFTC acknowledged the cooperation and assistance provided by the Securities Division of the North Carolina Department of the Secretary of State in the investigation. The case was led by CFTC Division of Enforcement staff members Xavier Romeu-Matta, Nathan Ploener, Christopher Giglio, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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