CPO Operator Charged With Fraud

Oct 31 2008 | 10:27am ET

A Virginia commodity pool operator has been found guilty of defrauding investors. Ted James Johnson, of Pearisburg, was convicted of 37 counts following a three week trial for running an illegal commodity pool.

Johnson was found guilty of embezzling commodity pool funds, acting as an unregistered commodity pool operator, and other criminal counts, including mail fraud, wire fraud, money laundering and securities fraud.

In July 2007, Johnson and his partner, Frank Graham Farrier, were charged in connection with a multi-million dollar Ponzi scheme related to commodity futures. Earlier this month, Farrier pleaded guilty to mail fraud, conspiracy to launder money, securities fraud and being an unregistered commodity pool operator, and agreed to forfeiture of his assets.

The maximum penalty faced by Johnson and Farrier is 85 years imprisonment and a fine of more than $4.5 million.


In Depth

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of