William Patrick Kelly of Weston, Connecticut, has been charged with fraud and sanctioned by the U.S. Commodity Futures Trading Commission (CFTC) for misappropriating funds from a commodity pool and making false statements to regulators. The CFTC filed and settled charges against Kelly and his firm, IAG Capital Management, LLC, on February 28, 2012.
The investigation revealed that Kelly and IAG wrongfully used over $320,000 of the $6 million raised from approximately 80 investors in the IAG Multi Strategy Fund LP for personal expenses. These unauthorized transfers occurred between October 2009 and January 2010. While the funds were eventually returned to the pool’s accounts, the withdrawals were not disclosed to investors.
Furthermore, the CFTC found that Kelly commingled pool participants’ funds with his own, a practice prohibited by regulations. He also misled the National Futures Association (NFA) during an examination, falsely claiming the 2009 withdrawals were the only instances of unauthorized fund usage. The investigation proved Kelly continued to misuse investor funds in January 2010.
The NFA had previously issued a Member and Associate Responsibility Action in March 2010, barring Kelly and IAG from soliciting investments, executing trades on behalf of others, and controlling investor funds. The IAG Multi Strategy Fund was subsequently liquidated in July 2010, with remaining funds distributed to investors.
As a result of the CFTC’s action, Kelly and IAG are jointly and severally liable for a $280,000 civil monetary penalty. Additionally, both are permanently banned from trading commodities and registering with the CFTC. The CFTC acknowledged the assistance of the NFA in the investigation.
Source: CFTC.gov
Related Federal Cases
- Deirdre M. Daly, Election Fraud, Connecticut 2016 · Washington
- Aaron Johnson, Investment Fraud Scheme, Connecticut 2024 · Rhode Island
- Federal Regulators, Lifel, Securities Fraud, California 2020 · New York
- MoneyGram International Inc., Wire Fraud, California 2020 · New York
- Letitia James, Securities Fraud, New York 2023 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News