Reno, NV – December 11, 2008 – William Snyder of Issaquah, Washington, and his company, Alliance Development Company, based in Reno, Nevada, have been ordered to pay a combined $3.65 million in restitution and penalties for defrauding investors through a commodity pool scheme, the Commodity Futures Trading Commission (CFTC) announced today.
Snyder was penalized $1.65 million, while Alliance Development Company will pay $550,000 in restitution. Additionally, Snyder’s daughter, Christi Wilson of Reno, Nevada, a former principal of Alliance, must disgorge $220,000 in payments received from the fraudulent operation. The settlement stems from a complaint filed by the CFTC in September 2006.
According to the consent order entered by U.S. District Court Judge Larry R. Hicks for the District of Nevada on December 10, 2008, Snyder and Alliance fraudulently solicited investments in commodity pools between October 2004 and February 2006. They utilized at least ten shell companies and aliases to mislead investors, falsely claiming to trade commodity futures contracts.
The CFTC found that Snyder and Alliance misrepresented the potential for profits, failed to disclose the risks associated with futures trading, and did not provide required disclosures to investors. They also provided falsified account statements to at least two participants. The pair collected $550,000 from investors, most of which was misappropriated to cover Snyder’s and Wilson’s personal expenses.
As part of the settlement, Snyder, Alliance, and Wilson are permanently barred from engaging in any activity related to commodities trading. The case was led by CFTC staff members Rachel Hayes, Jo Mettenburg, Lacey Dingman, Charles Marvine, and Richard Glaser.
This enforcement action highlights the CFTC’s commitment to protecting investors from fraudulent schemes in the commodity futures markets.
Source: CFTC.gov
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