NASHVILLE, TN – U.S. District Court Judge Kevin H. Sharp issued an emergency order on August 25, 2015, freezing assets connected to Maverick Asset Management, LLC, and its principals, Rodney Scott Phelps and Jason T. Castenir. The order, which was announced by the Commodity Futures Trading Commission (CFTC) on September 8, 2015, also prevents the defendants from destroying financial records and allows the CFTC immediate access to those records.
The CFTC filed a civil enforcement complaint under seal alleging that Phelps, Castenir, and their company fraudulently solicited at least $1.2 million from the public to trade commodity futures. The complaint alleges they misappropriated over $800,000 of investor funds for personal use and misrepresented the profitability of their trading activities. Additionally, the defendants are accused of operating a commodity pool without being properly registered with the CFTC, a violation of federal regulations.
According to the CFTC, Phelps and Castenir distributed falsified account statements to pool participants, altering genuine statements received from their futures broker to display false profits. This occurred despite consistently unprofitable trading results. The scheme allegedly aimed to deceive investors about the performance of their investments.
The CFTC is seeking full restitution for defrauded investors, disgorgement of any ill-gotten gains, monetary penalties, permanent bans from trading and registration, and a permanent injunction against future violations of commodities laws. The agency is working in cooperation with the U.S. Attorney’s Office for the Middle District of Tennessee.
Individuals who suspect fraud or violations of commodity trading laws are encouraged to contact the CFTC via its toll-free hotline at 866-FON-CFTC or submit a tip online.
Source: CFTC.gov
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