Robert S. Leben, Securities Fraud, South Carolina 2014
Robert S. Leben, a resident of Columbia, South Carolina, and his wife Amy L. Leben, have been ordered to pay over $10 million in restitution and penalties in a CFTC anti-fraud enforcement action.
According to a summary judgment Order entered by Chief Judge Terry L. Wooten of the U.S. District Court for the District of South Carolina, the Lebens misappropriated pool participant funds and failed to register as commodity pool operators. The Order also found that Robert Leben issued false statements and fraudulently solicited pool participants by guaranteeing returns and the safety of each pool participant's principal investment.
The CFTC Complaint had alleged that between August 2008 and March 12, 2014, the Lebens, by and through the commodity pool Structured Finance Group Corporation (SFG), fraudulently solicited and accepted at least $3.2 million from at least 12 members of the general public to trade commodity futures contracts through a pool.
The Court's Order requires the Lebens to pay restitution to victims in the amount of $2,551,596, disgorgement in the amount of $109,787, and a civil monetary penalty in the amount of $7,654,788. The Order further imposes permanent trading and registration bans and prohibits the Lebens from violating the anti-fraud and registration provisions of the Commodity Exchange Act and CFTC Regulations, as charged.
In a parallel criminal action, Robert Leben was sentenced to 40 months in prison for his role in the same fraudulent conduct.
The CFTC appreciates the cooperation of the South Carolina Attorney General's Office and the Office of the U.S. Attorney for the District of South Carolina in this matter.
The CFTC Division of Enforcement staff members responsible for this case are Amanda Burks, Michael Loconte, Erica Bodin, Elizabeth Davis, and Rick Glaser.
Customers can report suspicious activities or information by contacting the CFTC's Division of Enforcement at (202) 418-5088 or by submitting a tip online.
Key Facts
- State: South Carolina
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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