Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

CFTC - U.S. Commodity Futures Trading Commission : Federal Court Orders Wisconsin Resident Eric N. Schmickle and his Company, Q Wealth Management Inc., to Pay over $5 Million in Restitution and a Civil Monetary Penalty for a Multi-Million Dollar Commodity Futures Fraud

share with twitter share with LinkedIn share with facebook
share via e-mail
04/23/2013 | 08:36pm CEST

April 23, 2013

In a related criminal action, Schmickle pleaded guilty to wire fraud and was sentenced to 36 months in prison

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained an Order requiring Defendants Eric N. Schmickle, of Cedarburg, Wisconsin, and his company, Q Wealth Management Inc., to pay approximately $3.6 million of restitution and jointly to pay a $1.5 million civil monetary penalty in connection with operating a commodity futures Ponzi scheme (see CFTC Press Release 6362-12, September 26, 2012).

The Consent Order for Permanent Injunction, entered on April 19, 2013, by Judge Rudolph T. Randa of the U.S. District Court for the Eastern District of Wisconsin, also imposes permanent trading and registration bans against the Defendants and prohibits them from violating the Commodity Exchange Act and a CFTC Regulation, as charged.

The Order finds that, from May 2009 through approximately April 2012, Schmickle operated a fraudulent commodity futures scheme through two entities: Q Wealth Management Inc., a Commodity Trading Advisor, and Aquinas SF LLC, a Commodity Pool Operator. Through these entities, Schmickle solicited approximately $5.2 million from one managed client and ten pool participants. Of those customer funds, Schmickle lost more than $2.9 million in trading and fees and misappropriated approximately $647,000 for his own personal benefit.

The Order further finds that to perpetrate the fraud, Schmickle fabricated and issued false account statements and tax forms that showed fake investment gains, instead of the actual losses. In addition, Schmickle sent invoices to the managed client, charging that client for commission on fake investment gains, according to the Order.

In a related criminal proceeding, on August 31, 2012, Schmickle pleaded guilty to wire fraud, and on February 26, 2013, Judge Randa sentenced him to 36 months in prison (see United States v. Schmickle, No. 12-cr-149 (E.D. Wis. Mar. 12, 2013)).

The CFTC appreciates the assistance of the U.S. Attorney's Office (Eastern District of Wisconsin) and the Federal Bureau of Investigation (Milwaukee Division).

The CFTC Division of Enforcement staff members responsible for this case are David Chu, Mary Beth Spear, Ava Gould, Scott Williamson, Rosemary Hollinger, and Richard Wagner.

Media Contacts
Dennis Holden

Last Updated: April 23, 2013

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news
Date Title
03:53a Khang & Khang LLP Announces an Investigation of Illumina Inc. and Encourages Investors with Losses to Contact the Firm
03:49a Women shipping executives launch WISTA Bermuda
03:43a QAF : Change in interests of Substantial Shareholder
03:38a FLETCHER NICKEL : Frontier Lithium Signs Important Exploration Agreements
03:36a SHAREHOLDER UPDATE : Brodsky & Smith, LLC Announces an Investigation of The Board of Directors of Everyday Health, Inc. -EVDY
03:33a PATTERSON : Heartland Dental, the largest dental support organization in the U.S., selects Patterson Dental as its distribution partner
03:30a METANOR RESOURCES : Reports Its Financial Results for the Quarter and Year Ended June 30th 2016
03:21aDJAT&T Is in Advanced Talks to Acquire Time Warner -- 4th Update
03:20a MCDONALD : Higher court upholds judge's decision in McDonald's payroll card suit
Latest news
Hot News 
14.01%BAT Offers to Buy Remaining Reynolds Stake for $47 Billion
-3.00%AT&T Is in Advanced Talks to Acquire Time Warner
-8.12%Elliott Management Opposes GE's Offer for German 3-D Printer Maker SLM
-5.41%MOODY : Says Justice Department Preparing Complaint
4.21%Microsoft shares hit high as cloud business flies above estimates
Most Read News
06:13p BOMBARDIER : to cut 7,500 more jobs through 2018, mostly in rail
08:26p AT&T agrees in principle to buy Time Warner for $85 billion - sources
06:25p AMAZON COM : New NYC law, San Francisco lawsuit highlight global risks for Airbnb
06:07p PAYPAL : says some customers unable to make payments due to cyber attack on Dyn
06:04p DUKE ENERGY : McCrory's Duke Energy ties, and coal ash response, become a campaign issue
Most recommended articles
02:59pDJFACEBOOK : Employees Pushed to Remove Trump Posts as Hate Speech
10/19DJGold Prices Boosted by Weaker Dollar
10/18 S&P 500 earnings now expected to show growth for third quarter
10/17DJS&P 500, Nasdaq Futures -- Technical Analysis
09:21pDJAT&T Is in Advanced Talks to Acquire Time Warner -- 4th Update