Harrodsburg, Kentucky – William S. Evans III and his wife, Frances Evans, are facing a hefty penalty after a U.S. District Court order in the Eastern District of Kentucky imposed nearly $17 million in restitution and disgorgement for a fraudulent investment scheme. The Commodity Futures Trading Commission (CFTC) originally filed the enforcement case on May 28, 2020.
Evans, operating under the name Turning Point Investments, allegedly misappropriated over $10.6 million from investors beginning in September 2018. He falsely claimed the funds would be used for commodity futures trading, but instead diverted them for personal use and to maintain a Ponzi-like structure, paying earlier investors with money from new participants.
The court order mandates Evans pay $16,934,773.40 in restitution to defrauded investors. Both William and Frances Evans are required to disgorge $10,040,418.44. Furthermore, the order permanently bans them from engaging in futures trading and registering with the CFTC.
According to the CFTC, Evans operated as a Commodity Pool Operator without the required registration. He also misrepresented his fee structure and the potential risks and profits associated with the investments.
The CFTC advises that victims may not fully recover their losses, as the defendants’ ability to repay depends on their available assets. The agency continues to pursue legal action against those who violate commodity trading laws and protect customers from fraud.
The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Eastern District of Kentucky in the investigation. Candy Haan, Heather Dasso, Venice Bickham, David Terrell, Scott R. Williamson, and Robert T. Howell of the CFTC’s Division of Enforcement were key personnel on the case.
Individuals who suspect commodity trading fraud are encouraged to report it to the CFTC via the toll-free hotline at 866-FON-CFTC, online tip/complaint submission, or through the Whistleblower Office.
Source: CFTC.gov
Related Federal Cases
- Mark Cornell Pleads Guilty to Securities Fraud, Frankfort KY, 2023 · Mississippi
- Andrea M. Trgovcich, Securities and Bank Fraud, OH 2024 · Texas
- John Guzman, Bank Fraud, Kentucky 2024 · Kentucky
- William Helton, Tax Fraud Conspiracy, KY 2024 · Kentucky
- Nicole Pennington Sentenced to 44 Months for COVID Loan Wire Fraud,… · Indiana
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News