Robert J. Andres of Houston, Texas, has been implicated in a multi-million dollar fraud scheme resulting in a $32,370,000 civil penalty and $12 million in restitution to defrauded customers. The judgment, entered by the U.S. District Court for the District of Utah on June 6, 2014, also imposes permanent trading and registration bans on Andres, his company Winsome Investment Trust, Robert L. Holloway of San Diego, California, and Holloway’s company US Ventures LC.
The case originated from a CFTC civil enforcement action filed on January 24, 2011, alleging fraud in the operation of a commodity futures pool. The court order finds the defendants engaged in fraudulent activities. Parallel criminal actions were brought by the U.S. Attorney’s Office for the District of Utah, further solidifying the charges.
Andres pleaded guilty to one count of wire fraud and is scheduled to be sentenced on August 20, 2014. Holloway faces four counts of wire fraud and one count of filing a false income tax return, with a trial date set for July 8, 2014. The CFTC’s investigation, which began in 2011, revealed a complex scheme to defraud investors through the operation of a commodity pool.
The CFTC worked in conjunction with international regulatory bodies including the Comisión Nacional del Mercado de Valores (Spain), the Dubai Financial Services Authority, and the British Virgin Islands Financial Services Commission during the investigation. The Division of Enforcement staff members responsible for the case include Alan Edelman, Kevin S. Webb, Michelle S. Bougas, Heather Johnson, Kara Mucha, James H. Holl III, and Gretchen L. Lowe.
The CFTC urges customers who suspect fraudulent activity to report it via their toll-free hotline at 866-FON-CFTC or file a complaint online. This case serves as a reminder of the risks associated with commodity pool investments and the importance of due diligence.
Source: CFTC.gov
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