Timothy Michael Murphy of Redding, Connecticut, has been charged with fraud by the Commodity Futures Trading Commission (CFTC), according to a release issued January 23, 2012. Murphy and his New York-based company, Centurion Global Capital Management LLC (CGCM), were accused of fraudulently soliciting at least 40 customers into a commodity pool.
The CFTC’s order mandates that Murphy and CGCM jointly pay a $140,000 civil penalty and $220,000 in restitution. Additionally, both Murphy and CGCM are permanently prohibited from trading through a CFTC-registered entity, and Murphy is barred for five years from registering with the CFTC or seeking exemption from registration.
Between May 2009 and January 2010, CGCM, operating through Murphy, allegedly used a promotional sheet to attract investors to the Centurion Multi-Strategy LP commodity pool. The CFTC found that Murphy knowingly included false and misleading information in the promotional material concerning the trading performance of one of the Commodity Trading Advisors managing the pool’s funds.
At least 40 potential investors received the fraudulent promotional sheet via email and other means. Murphy reportedly received approximately $220,000 from CGCM, derived from fees and commissions generated by the Centurion pool, between September 2009 and July 2010. The Centurion pool was liquidated around July 2010, with remaining funds returned to investors.
The CFTC acknowledged the assistance provided by the National Futures Association (NFA) and the Swiss Financial Market Supervisory Authority (FINMA) in the investigation. The case was handled by CFTC staff members including Joseph Rosenberg, Mark A. Picard, Sheila Marhamati, Philip Rix, Steven I. Ringer, Lenel Hickson, Stephen J. Obie, and Vincent A. McGonagle.
Source: CFTC.gov
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