Miami resident Oscar Hernandez has been ordered to pay $1.4 million in penalties to settle charges of operating a multi-million dollar Ponzi scheme, the Commodity Futures Trading Commission (CFTC) announced October 1, 2012. Hernandez, along with his companies Midway Trading Company, LLC and Conquest Investment Group, Inc., fraudulently solicited over $3.8 million from investors between 2005 and 2008.
The CFTC’s investigation revealed Hernandez falsely promised investors annual returns of 20 to 60 percent through a supposedly “risk-free” commodity trading system. However, the court found Hernandez misappropriated approximately $1 million of investor funds for personal expenses, including mortgage payments, luxury vehicle payments, and American Express bills.
Judge Robin S. Rosenbaum of the U.S. District Court for the Southern District of Florida entered a consent order on September 27, 2012, imposing the $1.4 million penalty, a permanent trading ban, and registration ban against Hernandez and his companies. The order also permanently prohibits further violations of the Commodity Exchange Act.
This settlement comes after a related criminal case where Hernandez pleaded guilty in November 2011 to conspiracy to commit securities and commodities fraud. In March 2012, he was sentenced to 57 months in prison and ordered to pay restitution to the defrauded pool participants. The criminal case was filed in the U.S. District Court for the Southern District of Florida under case number 11-20686-CR-Lenard.
The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Southern District of Florida and the Federal Bureau of Investigation in bringing this case to resolution. Jennifer E. Smiley, Judith McCorkle, Joseph Konizeski, Scott Williamson, Rosemary Hollinger, and Richard B. Wagner of the CFTC’s Division of Enforcement led the investigation.
Source: CFTC.gov
Related Federal Cases
- Antonio Hernandez-Vilar, Card Fraud Ring Leadership, Tampa FL, 2015 · Georgia
- Orlando Pascual Jr., HIV Treatment Medicare Fraud, Miami FL, 2023 · Mississippi
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2023 · Texas
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2024 · Florida
- Alton Plunkett, Tax Fraud, New York NY, 2023 · New York
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News