Mitchell Brian Huffman, of Charlotte, North Carolina, was charged with operating a fraudulent commodity pool scheme that defrauded participants of over $3.2 million, according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC). The charges stem from a scheme allegedly run from August 2006 to March 11, 2011, targeting family and friends.
Huffman solicited investments for exchange-traded commodity futures contracts, promising high returns but failing to disclose the substantial risks involved. He claimed to utilize a “proprietary trading program” that generated annual profits of 100 to 150 percent, retaining 20 percent as a fee. The CFTC alleges these claims were entirely fictitious.
The complaint details how Huffman misappropriated approximately $3.2 million in participant funds for personal expenses. These included the purchase of luxury vehicles like two Land Rovers and a Smart Car, $71,255 spent on his classic car collection, and $188,583 on personal travel and luxury vacations – including Disney cruises and first-class airfare to Hawaii and Las Vegas. A 25th wedding anniversary trip to Hawaii was allegedly funded with participant money, with some participants invited under the pretense it was Huffman’s personal expense.
Huffman admitted to the scheme to special agents with the Federal Bureau of Investigation’s Charlotte office. He pleaded guilty in September 2011 to one count of commodities fraud (U.S. v. Mitchell Brian Huffman, Case No. 3:11-cr-246-RJC, U.S. District Court for the Western District of North Carolina). The CFTC filed its complaint on February 7, 2012, and announced the charges on February 17, 2012.
The CFTC collaborated with the Office of the U.S. Attorney for the Western District of North Carolina and the FBI’s Charlotte Office in the investigation.
Source: CFTC.gov
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