Mundelein, Illinois resident Richard D. Carter, along with Mark R. Slobodnik of Libertyville, Illinois, and their company Blue Guru Trading, LLC, are facing charges of commodity fraud, following a civil enforcement action filed by the Commodity Futures Trading Commission (CFTC) on January 12, 2018, in the U.S. District Court for the Northern District of Illinois.
The CFTC alleges that Carter, Slobodnik, and Blue Guru fraudulently solicited investments, issued false statements, and misappropriated funds related to their Blue Guru commodity pool. The complaint also cites registration violations. Authorities have secured a Statutory Restraining Order freezing the assets of all three defendants and prohibiting the destruction of relevant financial records.
According to the CFTC, the scheme ran from at least April 2014, and involved soliciting at least $750,000 from a minimum of eighteen individuals. Carter and Slobodnik reportedly targeted family, friends, business contacts, and individuals met through online chat rooms, promising substantial returns on investments in commodity futures contracts.
The defendants allegedly made false claims regarding the profitability of the Blue Guru pool, telling prospective investors they could expect monthly returns ranging from 3% to 8% with no losses. They also reportedly guaranteed annual returns of at least 8% and offered a 50% share of gross net trading profits. However, the CFTC claims that a significant portion of the invested funds was not used for trading, but instead misappropriated by Carter and Slobodnik.
Participants in the Blue Guru pool have reportedly been unable to withdraw their funds, while Carter and Slobodnik have allegedly ignored requests, employed delaying tactics, and provided misleading information. The CFTC’s Director of Enforcement, James McDonald, stated the agency acted swiftly to halt the scheme, freeze assets, and protect potential victims.
A hearing is scheduled for January 26, 2018, to consider the CFTC’s motion for a preliminary injunction against the defendants.
Source: CFTC.gov
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