Washington, D.C. – Colorado resident Michael T. Zatorski and his firm, Highland Quantitative Driven Investments LLC, have been slapped with charges by the Commodity Futures Trading Commission (CFTC) for fraudulent activity related to a commodity pool they operated. The CFTC simultaneously filed and settled charges against Zatorski and Highland on Thursday.
The agency found that between October 2016 and October 2021, Zatorski and Highland improperly transferred $176,206.54 from the commodity pool – which initially held approximately $25 million in assets from around 60 participants – to a separate entity, Firm A, controlled by Zatorski. These transfers violated the pool’s operating documents and were made without informing investors.
Highland had represented to pool participants that it would pay licensing fees to Firm A for algorithmic trading strategies. However, the CFTC alleges that funds were transferred *directly* from the pool to Firm A, exceeding the authorized amount outlined in the operating documents. Some transfers were entirely unauthorized. While some funds were eventually repaid, the net improper transfer totaled $176,206.54.
As a result of the settlement, Zatorski and Highland will jointly pay $176,206.54 in restitution to the affected pool participants, along with a $300,000 civil monetary penalty. The CFTC order also mandates a cease and desist from further violations of the Commodity Exchange Act. Furthermore, Highland is permanently banned from trading, and Zatorski is subject to permanent trading restrictions.
The CFTC cautioned investors that restitution orders do not guarantee full recovery of lost funds, as wrongdoers may lack sufficient assets. The National Futures Association (NFA) assisted in the investigation. The case was led by CFTC staff members Stephen Turley, Monique McElwee, Rachel Hayes, Thomas Simek, Christopher Reed, Charles Marvine, and former staff member Jo Mettenburg, with assistance from intern Ron Mayer.
The CFTC reminds the public to verify the registration of companies and individuals before investing, utilizing resources like NFA BASIC, and to report any suspicious activity.
Source: CFTC.gov
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