Grand Rapids, Michigan – Steven G. Schroeder was ordered to pay $317,703 in penalties and restitution following a judgment in the U.S. District Court for the Western District of Michigan on May 1, 2009. The Commodity Futures Trading Commission (CFTC) brought the case against Schroeder, alleging fraudulent practices related to managed commodity futures trading accounts.
Schroeder was assessed a $130,000 civil monetary penalty and required to repay nine investors a total of $187,703, representing losses incurred while he managed their accounts. The initial complaint was filed by the CFTC on September 27, 2006, and detailed a pattern of misrepresentation.
According to court findings, Schroeder misled prospective clients by providing false information regarding his financial standing and trading expertise. These misrepresentations included inflated claims about the size of his personal trading accounts, fabricated profitability reports for both his personal and client accounts, and falsified details about his educational background.
Specifically, Schroeder presented a fabricated account statement claiming a $1 million balance and a false trading record indicating $730,000 in profits. Judge Gordon J. Quist previously issued an order on October 6, 2006, permanently barring Schroeder from participating in commodity futures trading, deferring financial sanctions to a later date.
A freeze order remains active, preventing Schroeder from accessing any funds or assets until the full restitution and penalty amounts are satisfied. The case was led by CFTC staff members Susan B. Padove, Elizabeth Streit, Ava Gould, William W. Heitner, Jr., Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
The judgment was announced by the CFTC on May 13, 2009.
Source: CFTC.gov
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