HOUSTON, TX – The Commodity Futures Trading Commission (CFTC) has levied a $75,000 penalty against Mobius Risk Group LLC, a Houston-based limited liability company, for operating as an unregistered Commodity Trading Advisor (CTA). The CFTC announced the order on Friday, September 14, 2018.
According to the CFTC, Mobius provided advisory services regarding over-the-counter (OTC) swaps and commodity options trading between October 2012 and August 15, 2018, without being properly registered. The company held itself out to the public as a CTA and furnished advice to more than fifteen individuals within a twelve-month period, both requirements triggering mandatory registration with the CFTC.
The investigation revealed that Mobius offered risk management services to eligible contract participants via its website. The firm specifically advised clients on physical commodity trading, as well as providing reports and analyses on OTC swaps and commodity options related to oil, natural gas, and liquefied natural gas. This included developing trading and hedging strategies utilizing these instruments to mitigate clients’ energy risks.
The CFTC acknowledged Mobius’s substantial cooperation throughout the investigation, resulting in a reduced civil monetary penalty. In addition to the financial penalty, the order mandates that Mobius cease and desist from any further violations of the CTA registration provisions of the Commodity Exchange Act. Notably, the CFTC confirmed that Mobius registered as a CTA on August 16, 2018, following the conclusion of much of the investigation.
The case was led by CFTC staff members W. Derek Shakabpa, Alben Weinstein, Patryk J. Chudy, Lenel Hickson, Jr., and Manal M. Sultan, all from the Division of Enforcement.
Source: CFTC.gov
Related Federal Cases
- Tren de Aragua Leaders Unsealed, Terror Cartel Crimes, Texas, 2023 · New Mexico
- Parkchester Preservation Management, LLC, Tenant Blacklisting, New … · Arkansas
- New York Attorney General’s Office, Crypto Investment Scam, New Yor… · New Mexico
- Letitia James Leads Coalition Against Fraudulent Investment Ads, Ne… · Alabama
- Pam Bondi, Money Laundering, Texas, 2023 · New Mexico
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News