FT MYERS, FL – William Jeffery Chandler, 41, is facing charges of forex fraud and misappropriation following a civil enforcement action filed by the U.S. Commodity Futures Trading Commission (CFTC) on September 10, 2012. Judge James D. Whittemore of the U.S. District Court for the Middle District of Florida issued an emergency order on September 11, 2012, freezing Chandler’s assets and prohibiting the destruction of financial records.
According to the CFTC complaint, Chandler allegedly solicited at least six individuals to invest a total of $773,100 into a pooled account beginning in July 2010. The funds were intended for off-exchange foreign currency (forex) trading under Chandler’s control at Dukascopy Bank SA in Switzerland. Chandler is accused of guaranteeing monthly returns ranging from 2 to 12.5 percent on the principal investments.
However, the complaint details that Chandler’s account at Dukascopy Bank was closed in July 2011 due to regulatory changes. The remaining balance of the pooled account, transferred to Alpari US LLC in August 2011, totaled only $292.49 – significantly less than the amount contributed by investors. Despite the account closure, Chandler is alleged to have continued soliciting funds and falsely representing to investors that their money remained in the Dukascopy Bank account.
Chandler allegedly refused to return the principal to investors, offering fabricated excuses. The CFTC claims he misappropriated the majority of the pooled funds for personal use. Further, the agency alleges Chandler created fictitious statements from a purported accounting firm, A.R. Watkins, to deceive investors. Authorities believe A.R. Watkins is a sham entity controlled by Chandler.
The CFTC is seeking civil monetary penalties, restitution, rescission, disgorgement of ill-gotten gains, trading and registration bans, and both preliminary and permanent injunctions against Chandler. The Pasco County Sheriff’s Office assisted in the investigation. A hearing on the CFTC’s motion for a preliminary injunction is scheduled for September 26, 2012.
The case is being handled by CFTC staff members Jo Mettenburg, Jeff Le Riche, Stephen Turley, Rick Glaser, and Richard Wagner.
Source: CFTC.gov
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