CHICAGO, IL – December 10, 2015 – Thomas Gillons of Napa County, California, has been slapped with a permanent injunction and hefty financial penalties following a CFTC enforcement action, officials announced today. U.S. District Court Judge Harry D. Leinenweber issued a Consent Order requiring Gillons to pay a $1 million civil penalty and $994,068 in restitution to victims of his fraudulent scheme.
The CFTC initially filed a complaint against Gillons on November 19, 2014, alleging fraudulent solicitation and misappropriation of customer funds. Gillons also faced charges of accepting funds intended to secure commodity futures trades without being properly registered as a Futures Commission Merchant.
According to court documents, between November 2009 and November 2014, Gillons fraudulently solicited at least $1,550,432 from over 30 victims. He falsely claimed he would invest the funds in commodity futures and securities, or use them to establish a new trading company. However, the Order states Gillons deposited the money into his personal bank account and then misappropriated approximately $994,068 for personal expenses.
Despite repeated requests from victims and promises to repay the funds, Gillons had only returned around $556,364 as of the court order. Notably, Gillons concealed the fact that his securities registration had been previously suspended from potential investors.
The Consent Order also imposes permanent trading and registration bans, effectively prohibiting Gillons from engaging in any further violations of the Commodity Exchange Act. The CFTC reminds potential victims that restitution orders do not guarantee full recovery of lost funds, as the perpetrator may lack sufficient assets.
The case was led by CFTC Division of Enforcement staff members Stephanie Reinhart, David Terrell, Melissa Cavers, Scott Williamson, and Rosemary Hollinger.
Source: CFTC.gov
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