⏱ 3 min read
Brian Mitchell, a 43-year-old suspended commodities trader from Ann Arbor, Michigan, pleaded guilty to defrauding multiple investors of over $2.7 million in a multi-million-dollar commodities trading scheme. Mitchell used various entities, including Young Pros Investment Group and My Nest Egg, to solicit investor money, making false representations about the security, profitability, and use of investor funds. He guaranteed investors that their principal was protected against loss, but after suffering significant trading losses, he lied to them about why their investment was no longer guaranteed.
Mitchell’s scheme involved repeated misrepresentations that set earnings would occur and that investor funds would be available for return at certain points. He also falsely told investors that the Commodity Futures Trading Commission (CFTC) had seized assets that he described as ‘back-up money.’ Despite being barred from engaging in commodity futures trading activity for three years due to earlier violations of the Commodity Exchange Act, Mitchell continued to solicit, accept, and trade third-party investment funds in commodity futures.
Mitchell’s guilty plea comes after he entered into a settlement with the CFTC relating to earlier violations of the Commodity Exchange Act that occurred between January 2018 and January 2019. Under that settlement, Mitchell was prohibited from engaging in commodity futures trading activity and from soliciting, receiving, and accepting funds for such activity. However, he failed to disclose his trading bar to investors and continued to operate his fraudulent scheme.
The investigation was led by the Federal Bureau of Investigation (FBI), with the support of the CFTC. The guilty plea was announced by United States Attorney Jerome F. Gorgon, Jr., who was joined by Special Agent in Charge Jennifer Runyan of the FBI’s Detroit field office.
Mitchell’s guilty plea marks the end of a lengthy investigation into his fraudulent activities. His sentence will be determined at a later date, and he faces significant penalties for his role in the multi-million-dollar commodities trading scheme.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Michigan
- Location: MI
- Source: DOJ Press Release
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