Robert Leland Johnson IV and his wife, Marisa Elena Johnson, of Chino, California, are facing charges of commodity futures fraud and operating a Ponzi scheme, according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on April 19, 2017, in the U.S. District Court for the Central District of California.
The CFTC alleges that the Johnsons, operating through their company Capitol Equity FX LLC, fraudulently solicited approximately $1,735,750 from investors between May 2012 and May 2015, promising participation in a pooled fund that traded commodity futures and foreign currency contracts. The complaint details accusations of material misrepresentations and omissions regarding their trading skills, strategies, and profitability to entice investors.
Investigators claim the Johnsons fabricated performance statements and account documents, falsely inflating profits and concealing losses to mislead investors. These documents allegedly overstated account balances by millions of dollars. The CFTC further alleges the couple misappropriated investor funds, using them for personal expenses, depositing them into personal bank accounts, and trading through personal accounts.
A significant portion of the funds were allegedly diverted to earlier investors, characteristic of a Ponzi scheme. The CFTC is seeking full restitution for defrauded investors, disgorgement of any ill-gotten gains, civil monetary penalties, and permanent bans from trading and registering with the CFTC. They also seek a permanent injunction preventing future violations of federal commodities laws.
The case is being pursued by Daniel J. Grimm, Kyong J. Koh, Timothy J. Mulreany, James H. Holl, III, and Paul G. Hayeck of the CFTC’s Division of Enforcement. The CFTC encourages anyone with information about potential commodity trading violations to contact them via their toll-free hotline or online complaint portal.
Source: CFTC.gov
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