Sharief Deona McDowell of Loma Linda, California, has been ordered to pay over $4.75 million in restitution and penalties for defrauding investors through a commodity trading scheme, the Commodity Futures Trading Commission (CFTC) announced Friday.
The CFTC filed and settled charges against McDowell for fraud related to options on commodity futures contracts and for operating as an unregistered commodity trading advisor (CTA). McDowell, operating through her company Presidential Investments LLC, allegedly solicited over $2 million from at least 29 investors between October 2018 and March 2022, promising to trade commodity futures and options on their behalf.
Instead of investing the funds as promised, McDowell misappropriated them for personal use. The CFTC found that McDowell knowingly made false statements and omitted crucial information to clients regarding the use of their funds and purported profits. She provided fabricated trade confirmations and updates to maintain the illusion of successful trading.
McDowell acted as a CTA without being properly registered with the CFTC, violating the Commodity Exchange Act (CEA). The order requires McDowell to pay $2,376,509.96 in restitution to the defrauded investors, as well as a $2,376,509.96 civil monetary penalty. She is also permanently banned from registering with the CFTC and engaging in commodity trading.
This enforcement action runs parallel to a criminal case in the U.S. District Court for the Central District of California, where McDowell pleaded guilty on November 30, 2022. Sentencing is scheduled for June 30, 2023. (United States v. McDowell, 5:22-cr-00274-AB)
The CFTC cautioned that victims may not fully recover their losses, as wrongdoers often lack sufficient assets. The agency continues to pursue legal action against those who violate commodity trading laws. The investigation received assistance from the U.S. Attorney’s Office for the Central District of California, the Department of Justice’s Criminal Division, the FBI’s Riverside Field Office, and the British Columbia Securities Commission.
Source: CFTC.gov
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