Reno, Nevada – William Snyder, 42, of Michigan, and Christi Wilson, of Reno, Nevada, face charges of fraud following a CFTC complaint filed in September 2006. The U.S. Commodity Futures Trading Commission (CFTC) secured preliminary injunctions against Snyder, Wilson, and their company, Alliance Development Company, on November 3, 2006, as issued by the Honorable Larry R. Hicks of the United States District Court for the District of Nevada.
The complaint alleges that, beginning in October 2004, Snyder and Wilson engaged in fraudulent schemes to solicit investments for commodity pools operated by Alliance. They targeted members of the general public, falsely promising monthly profits ranging from 20% to 45%. Prosecutors claim the defendants misrepresented that investor funds would be used to trade commodity futures contracts and failed to disclose the inherent risks associated with such trading.
Instead of investing the funds as promised, the CFTC alleges Snyder, Wilson, and Alliance misappropriated at least $355,000 from investors to cover personal expenses. These included cosmetic procedures like Botox injections, luxury vehicles, jewelry, and vacations. The defendants also allegedly provided investors with fabricated account statements showing inflated trading returns.
The charges further include violations of CFTC registration requirements, failing to register as a commodity pool operator, commingling funds, and failing to provide proper disclosure documents to investors. On October 3, 2006, Judge Hicks issued a temporary restraining order, freezing the defendants’ assets and preventing the destruction of financial records. That asset freeze remains in effect.
The CFTC is seeking permanent injunctions against Snyder and Wilson, restitution for defrauded customers, repayment of illegally obtained gains, and civil monetary penalties as part of its ongoing litigation. The case is being pursued by CFTC staff members Rachel A. Hayes, Jo Mettenburg, Lacey Dingman, Charles D. Marvine, and Richard Glaser.
Source: CFTC.gov
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