GRAND RAPIDS, MI – Steven G. Schroeder, a resident of Muskegon Heights, Michigan, has been permanently barred from engaging in commodity futures trading following a consent order entered by Judge Gordon J. Quist of the U.S. District Court on October 6, 2006. The U.S. Commodity Futures Trading Commission (CFTC) brought the case against Schroeder on September 27, 2006, alleging fraudulent activity.
The court order permanently prohibits Schroeder from trading commodities for himself or others. It also continues a freeze on his assets and prevents him from altering or disposing of his financial records. The CFTC complaint detailed that Schroeder made material misrepresentations to potential clients seeking managed account services.
Specifically, Schroeder falsely claimed to have a $1 million balance in his personal trading account and fabricated a trading history showing $730,000 in profits. He allegedly used these false statements to solicit approximately $2.057 million from at least eleven investors. At the time the lawsuit was filed, Schroeder was managing over $225,000 for one client, but that trading authority has since been revoked.
The CFTC is continuing its investigation to determine the exact amount of restitution Schroeder owes to the defrauded investors. A future court order will specify the final amounts for restitution, disgorgement, and civil monetary penalties. The court has retained jurisdiction over the case to address these matters.
The case was led by CFTC staff members Susan B. Padove, Robert J. Greenwald, William W. Heitner, Jr., Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
Source: CFTC.gov
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