Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Commodities

News : Commodities

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

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
0
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
202-418-5088

Last Updated: April 23, 2013

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Commodities"
09:02pDJTumbling Belly Prices Pressure Hog Futures
08:18p Oil producers signal offshore return in latest Gulf of Mexico auction
06:14p Oil dips despite steep draw in U.S. crude stocks
06:03pDJOil Falls as Production Increase Outweighs Stockpile Decline
05:55pDJEUROPE MARKETS : European Stocks Log 3rd Straight Rise As Euro Weakens
05:29pDJCocoa Drops Lowers as Positive Weather Points to More Supplies
05:16pDJNEWS HIGHLIGHTS : Top Energy News of the Day
04:31pUNITED STATES : Crude Oil Inventories lower than estimates at -8,9M
04:15pDJIndustrial Production Seen Up -- Data Week Ahead
04:01pDJBase Metals Gain Amid China Restrictions
Latest news "Commodities"
Advertisement