CFTC Charges Unregistered CTA With Fraud

Dec 1 2006 | 12:54pm ET

The Commodity Futures Trading Commission on Nov. 28 filed a civil action against Peter Hoffman for allegedly fraudulently soliciting potential customers and opening discretionary trading accounts, acting as an unregistered commodity trading advisor and violating an order entered by the CFTC against him.

In March 1999, the CFTC imposed sanctions upon Hoffman based on findings that he had fraudulently marketed a commodity trading system while acting as an unregistered CTA, which is in violation of the Commodity Exchange Act and CFTC regulations. Hoffman was ordered to cease and desist from making false representations, prohibited from trading on contract markets for a period of five years, and prohibited from ever applying for registration with the CFTC in any capacity and from ever engaging in any activity requiring registration.

However, Hoffman violated the CEA, CFTC regulations and the March 1999 order by simply ignoring previous sanctions and continuing his charade, according to the recent CFTC complaint.

On Nov. 29, Judge Joan Lefkow of the United States District Court for the Northern District of Illinois issued an order freezing Hoffman’s assets and prohibiting him from destroying books and records. Judge Lefkow has set a hearing on the CFTC’s motion for preliminary injunction in the matter for Dec. 5.

In its ongoing litigation, the CFTC is seeking preliminary and permanent injunctive relief, repayment of customer losses, and payment of monetary penalties.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of