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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of