CFTC Charges Douglas Elsworth Wilson in Multi-Million Dollar Commodity Futures and Forex Scheme

0 Comments

Federal court issues order freezing defendants’ assets and prohibiting destruction of books and records

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on August 18, 2011 a federal court in California entered an order freezing the assets of defendants Douglas Elsworth Wilson of Poway, Calif., and three California companies that he controls and manages, Elsworth Berg Capital Management LLC (EBCM), Elsworth Berg Inc., and Elsworth Berg FX LLC (collectively, Elsworth Berg). The order also prohibits the destruction of their books and records.

The order arises out of a CFTC civil complaint filed on July 27, 2011 in the U.S. District Court for the Southern District of California. The complaint alleges that the defendants solicited at least $4.4 million from over 60 customers to trade commodity futures contracts and foreign currency (forex). The defendants allegedly misappropriated customer funds, committed solicitation fraud, and issued false statements in the commodity futures and forex scheme.

In connection with their fraud, defendants allegedly misrepresented to customers and prospective customers that regardless of Elsworth Berg’s commodity futures or forex trading results, the return of customers’ investment principal was guaranteed at the end of a five-year period through use of a purportedly innovative “Collateral Reserve” structure, which owned life insurance policies on third-parties.

Wilson and EBCM also allegedly issued false statements to some customers that overstated the value of their investments. Wilson and EBCM misappropriated approximately $72,000 in customer funds and used the money for purposes other than trading, according to the complaint.

In its continuing litigation against the defendants, the CFTC seeks restitution to defrauded customers, civil monetary penalties, permanent trading and registration bans, and permanent injunctions against further violations of federal commodities law.

The CFTC appreciates the assistance of the California Department of Corporations.

CFTC Division of Enforcement staff members responsible for this case are Theodore Z. Polley III, Melissa Glasbrenner, William P. Janulis, Scott Williamson, Rosemary Hollinger, and Richard B. Wagner

Grab your latest copy of the Forex Magnates Retail Forex Industry Report.







TAGS: , , , , , , , , , , , , , , , , , , , , , , , ,
 

Related posts:

More information on this subject is found in the latest Forex Magnates Quarterly Report


Comments are closed.

We do not store your information and we do not disclose our sources.


Leave your name/email (not required) if you'd like to be contacted about this story (will not be disclosed):



Digital Currencies

Executive Moves

Startups & New products

Atlas ATS Virtual Book

Atlas ATS Brings Wall Street Grade Crypto-Currency Platform, and Adds Options Trading

A developer regulated as a Money Service Business with FinCen just released its new platform for digital currencies, including options on Crypto-currencies, and described it...

NMC/BTC Technical Analysis – 16th April 2014

The last few days has seen Namecoin vs Bitcoin rise tremendously, in stark contrast to its trend over the past few weeks, only for some...

MtGox February Filing Withdrawn Today as Court Appoints Nobuaki Kobayashi Provisional Administrator

According to the latest filings from MtGox, the company has withdrawn its application to rehabilitate itself citing that there are no prospects to restart its...

More Digital Currencies

Lloyds’ Global Head Of Spot Forex, Darren Coote Resigns

Darren Coote, the Global Head of Spot Foreign Exchange at Lloyds Banking Group Plc. has resigned from his position for personal reasons, leaving a notable...

Max Hayden

BCS Appoints Ex-BofA Merrill Lynch MD Max Hayden as Head of Business Development

The latest person to head BCS Financial Group's new business development efforts brings a nearly 30 year career holding senior roles in financial services including...

tomgav

Pete Sinisgalli Appointed New CEO at Eze Software Group, Succeeding Tom Gavin

Eze Software Group, a global provider of investment technology across all asset-classes, has announced the appointment of Pete Sinisgalli as its new CEO, succeeding Tom...

More Executive Moves

New Product Spotlight

BT Prime Extends Emerging Markets Push, Adds Thai Baht Liquidity

EM offerings are taking the stage this year, as after increased offerings of Chinese Yuan trading, we are now getting an announcement that one of the leading FX liquidity providers adds the Thai Baht.
Read more

Normann_landingNormann_logo

Sneak Peak: Meet Normann, Your Cool Headed Trading Assistant

What if your trading platform could know when you aren’t making rational decisions, and could then use that information to restrict trades from taking place that shouldn’t be made? Meet Normann.
Read more

More Startups & New Products

Forex Research

Recent Comments

Note: Copyright © 2014 Forex Magnates. All rights reserved.

All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Forex Magnates. You may not alter or remove any trademark, copyright or other notice from copies of the content. All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at Forex Magnates are those of the individual authors and do not necessarily represent the opinion of Forex Magnates or its management. Forex Magnates has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by Forex Magnates, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Forex Magnates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2012 "Forex Magnates Inc. - Home of the Forex Elite" All Rights Reserved.