Chicago native Peter D. Hoffman, currently residing in Humble, Texas, has been permanently barred from engaging in any commodity-related activity after settling fraud charges brought by the U.S. Commodity Futures Trading Commission (CFTC). The consent order, entered on March 4, 2008, by Judge Joan H. Lefkow of the U.S. District Court for the Northern District of Illinois, resolves a case initially filed in November 2006.
Hoffman was charged with fraudulently soliciting customers, operating as an unregistered Commodity Trading Advisor (CTA), and violating a previous CFTC administrative order from March 1999. The 1999 order stemmed from findings that Hoffman had previously engaged in fraudulent marketing of a commodity trading system while acting as an unregistered CTA.
According to the CFTC, between February 2000 and March 2006, Hoffman continued to violate federal commodity laws and the prior 1999 order. The agency alleges Hoffman circumvented a five-year trading ban imposed in 1999 by funding and directing trades through various commodity futures accounts. He is also accused of falsely representing himself as a successful trader to clients and failing to disclose the prior CFTC order.
The settlement requires Hoffman to pay $252,850 in restitution to his defrauded customers and a $240,000 civil monetary penalty, totaling $492,850 in sanctions. The consent order permanently prohibits Hoffman from registering with the CFTC or engaging in any commodity-related activities. Hoffman has never been registered with the CFTC in any capacity.
The case was led by CFTC Enforcement staff members Jennifer S. Diamond, Elizabeth M. Streit, Susan J. Gradman, Thomas Koprowski, Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
Source: CFTC.gov
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