Chicago, IL – September 4, 2009 – Scott M. Ross, Chief Operating Officer of Maize Capital Management, LLC, has been charged with solicitation fraud and issuing false statements related to a $6 million commodity pool, according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Northern District of Illinois.
The CFTC alleges that Ross, along with Maize Capital Management, LLC, and another entity he controls, Maize Asset Management, LLC, engaged in a scheme to defraud investors between June 18, 2008, and January 14, 2009. The complaint details that Ross and Maize Capital provided false and misleading information to both current and prospective investors regarding the qualifications of participants and minimum investment amounts.
Specifically, the CFTC claims that Ross misrepresented Maize Capital’s legal status as an exempt commodity pool operator, violating the Commodity Exchange Act. The complaint further alleges misrepresentation concerning the identity of the pool’s administrator and auditor. Additionally, the CFTC alleges that Ross caused the distribution of inaccurate account statements that falsely inflated the profitability of investor accounts.
Beyond the false solicitations, Maize Capital, Maize Asset, and Ross are accused of improperly handling customer funds, violating CFTC regulations. The CFTC is seeking permanent injunctions against all defendants, restitution for defrauded customers, and monetary penalties. The amount of those penalties has not been specified.
The case is being pursued by the CFTC’s Division of Enforcement, with Joseph Konizeski, Michael Tallarico, William Janulis, Scott Williamson, Rosemary Hollinger, and Richard Wagner listed as responsible staff members.
Source: CFTC.gov
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