Ryan S. Magee of Calgary, Alberta, Canada, is facing charges of fraud and operating as an unregistered Commodity Pool Operator, according to a civil enforcement action filed by the U.S. Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Eastern District of Wisconsin on February 19, 2016.
The CFTC alleges that between March 2010 and August 2013, Magee fraudulently solicited at least $2 million from over 30 investors in the U.S. and Canada, promising to trade commodity futures on their behalf. The complaint details that Magee misappropriated at least CAD 893,837 (approximately $653,000 USD) and lost another CAD 1,360,348, as well as $13,015 USD, through trading. To conceal these losses and the misappropriated funds, Magee allegedly provided investors with false account statements reporting fabricated profits.
Also named in the complaint are Magee’s father, David W. Magee, and his wife, Dalyne Rae Magee, both of Calgary. They are accused of acting as unregistered Associated Persons, soliciting funds and handling investor money for the commodity pool.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, trading and registration bans, and injunctions against further violations of the Commodity Exchange Act. The agency acknowledged the assistance of the Alberta Securities Commission (ASC), which previously found the Magees liable for violating Alberta’s securities laws in a separate enforcement action last year, with Ryan Magee specifically found liable for fraud and misleading statements.
The case is being pursued by CFTC staff members Michael D. Frisch, Jon J. Kramer, Melissa Cavers, David Terrell, Scott R. Williamson, and Rosemary Hollinger.
The CFTC encourages individuals with information about potential commodity trading violations to contact them via their toll-free hotline at 866-FON-CFTC or submit a tip online.
Source: CFTC.gov
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