Indianapolis resident Terry Lee Phillips has been charged with commodity fraud by the U.S. Commodity Futures Trading Commission (CFTC), officials announced on September 17, 2015. Phillips, along with his companies Phillips Investment & Trust LLC and Corporate I Communications & Technology Inc., allegedly defrauded investors out of at least $113,400 between 2011 and 2014.
The CFTC’s order requires Phillips and his companies to jointly pay $94,500 in restitution to the 13 investors affected by the scheme. In addition to restitution, a $140,000 civil monetary penalty has been levied against the Respondents. Phillips is barred from trading for five years, while his companies face permanent trading bans. All Respondents are also permanently banned from registering with the CFTC.
According to the CFTC, Phillips misappropriated a significant portion of investor funds for personal use. He allegedly misled investors by providing fabricated account statements claiming substantial profits, while in reality, he was either losing money trading E-Mini Dow Futures contracts or not trading at all. Despite repeated requests for repayment, at least $94,500 of the fraudulently obtained funds remains unreturned to investors.
The CFTC coordinated with the Securities Division of the Office of the Indiana Secretary of State during the investigation. The agency cautioned victims that recovering lost funds through restitution orders is not guaranteed, as wrongdoers may lack sufficient assets. The CFTC stated its commitment to protecting customers and holding accountable those who violate the Commodity Exchange Act.
The case was led by CFTC Division of Enforcement staff members David C. Newman, W. Derek Shakabpa, Trevor Kokal, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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