HOUSTON, TX – September 20, 2016 – Raja Michael Mawad, a resident of Houston, Texas, has been charged with fraud by the U.S. Commodity Futures Trading Commission (CFTC). The charges stem from a scheme perpetrated between approximately 2009 and early 2015 involving a commodity pool operated by Mawad and his company, RNS Holdings LP.
According to the CFTC, Mawad and RNS Holdings engaged in fraudulent practices by misappropriating $189,032.72 from the commodity pool for unauthorized personal expenses, including travel, meals, salaries, payroll taxes, and expenses related to a separate pool also operated by Mawad. These withdrawals were not disclosed to investors.
The CFTC order also found that after RNS Holdings registered as a Commodity Pool Operator (CPO) with the CFTC in December 2012, Mawad failed to submit required annual reports to the National Futures Association (NFA) and distribute them to pool participants.
As a result of the settlement, Mawad and RNS Holdings are jointly and severally liable for a $200,000 civil monetary penalty. They are also required to pay $189,032.72 in restitution to defrauded customers, offset by any funds already distributed by the NFA in a related action (NFA Case No. 15-BCC-021). The order permanently bans Mawad and RNS Holdings from registering with the CFTC and requires them to cease and desist from violating the Commodity Exchange Act and related regulations.
The CFTC acknowledges the assistance of the NFA in this matter. The agency cautions investors that recovery of funds may not be possible, as wrongdoers may lack sufficient assets. The CFTC remains committed to protecting customers and holding accountable those who violate commodity trading laws.
Source: CFTC.gov
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