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

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
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
Date Title
12:41a AFCON : Henry Onyekuru joins Everton
12:39a NGFA NATIONAL GRAIN AND FEED ASSOCIATION : NAEGA urge preserving NAFTA benefits for food and ag sector
12:39a DAVIS POLK & WARDWELL LLP : Rio Tinto Cash Tender Offers
12:39a CITY OF TUCSON AZ : Relocates Some Neighborhood Recycling Centers (Video)
12:39a BURN ENTERTAINMENT : Dude Gets Hit By Bus Then Gets Up And Walks Into Bar For A Pint
12:36a FINITY, INC. : Announces Nearly 80K New Mexico Medicaid Members Step-Up to Prevention
12:36a HC2 Holdings Completes $38 Million Private Placement of Senior Secured Notes
12:34a CBP U S CUSTOMS AND BORDER PROTECTION : Border Patrol Rescues Continue to Climb
12:34a SEN. FRANKEN : U.S. Crackdown on Dumped Canadian Lumber is “Another Victory for Minnesota Timber Workers”
12:34a HILLSBOROUGH COUNTY FL : C.O.R.E. Campaign Rids Pipes of Gunk
Latest news
Advertisement
Hot News 
-8.85%ALLIED IRISH BANKS : Ireland could sell more AIB shares after oversubscribed IPO
-1.41%CROWN RESORTS : Casino Executive Sentenced -- WSJ
-7.99%Avis Gets Waymo Driverless Car Deal -- WSJ
5.50%Britain's Travis Perkins names ex-ARM man as chairman
-3.33%Auto supplier Schaeffler cuts profit guidance on steel costs, electric shift
Most Read News
06:12p LAPIS Semiconductor’s Breakthrough Soil Environment Sensor
06:09p SOTHEBYS : (English) Sotheby's Confirms its Strong Position in the Market for Swiss Art - Results - Swiss Art / Swiss Made - Zurich
06:14p BAYERISCHE MOTOREN WERKE : The Black Fire Edition of the BMW X5 M and BMW X6 M.
06:01p Solera National Bancorp Announces 2017 Annual Meeting Results
06:04p STHREE : Purchase of own shares
Most recommended articles
06:11p Scrapping South Korea pact would be rash mistake - U.S. trade lobby
05:52pDJADRs End Mostly Down; Tech and Oil Companies Trade Actively
05:50pDJGRAIN HIGHLIGHTS : Top Stories of the Day
05:38p Canada allows Dow, Dupont merger after firms agree to sell assets
05:38pDJMetals Advance Amid Dollar Weakness