Chicago, IL – November 30, 2006 – The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil action against Peter D. Hoffman, a resident of Chicago, Illinois, alleging fraud, acting as an unregistered Commodity Trading Advisor (CTA), and violating a prior CFTC order.
The complaint, filed November 28, 2006, in the Northern District of Illinois, accuses Hoffman of fraudulently soliciting customers and opening discretionary trading accounts despite a 1999 CFTC order prohibiting him from trading or registering with the agency. The 1999 order stemmed from findings that Hoffman had previously fraudulently marketed a commodity trading system while operating as an unregistered CTA.
According to the CFTC, Hoffman circumvented the trading prohibition by funding and directing trades in multiple commodity futures accounts between February 2000 and April 2004. He is also accused of defrauding clients by falsely claiming trading success and failing to disclose the existing CFTC order against him. Hoffman allegedly continued to act as a commodity trading advisor without proper registration.
Judge Joan H. Lefkow of the United States District Court for the Northern District of Illinois issued an order on November 29th freezing Hoffman’s assets and preventing the destruction of relevant records. A hearing on the CFTC’s motion for a preliminary injunction is scheduled for December 5th.
The CFTC is pursuing preliminary and permanent injunctions, restitution for customer losses, and monetary penalties as part of its ongoing litigation. The agency has not specified the amount of penalties sought at this time.
The case is being handled by Jennifer S. Diamond, Susan J. Gradman, Thomas Koprowski, Scott R. Williamson, Rosemary Hollinger, and Richard Wagner of the CFTC’s Division of Enforcement.
Source: CFTC.gov
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