Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

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
React to this article
Latest news
Date Title
01:38p MINISTRY OF FOREIGN AFFAIRS OF SLOVAK REPUBLIC : Ambassadors of Ecuador, Mexico and Chile presented copies of their credentials
01:37p FERRARI NV : Vettel fastest in third practice at Monaco Grand Prix
01:36p ARCHER DANIELS MIDLAND : ADM interns boost Fairview Park cleanup efforts
01:34p DIGITAL BROADCAST : MTN launches TV service in Jos
01:34p SAMSUNG ELECTRONICS : 2 new features for Samsung J series users
01:27p ADITYA BIRLA MANAGEMENT PRIVATE : Hindalco reports fourth quarter and fiscal year 2016 results (standalone and consolidated)
01:25p MANCHESTER UNITED : José Mourinho more of a risk for Manchester United than three years ago
01:23p VERIZON COMMUNICATIONS : workers reach tentative labor deal
01:09p ARDMORE SHIPPING : Corps Stock Is Buy After Todays Huge Increase
01:08p ENAGAS : Spain to receive 15 LNG cargoes in July, reload none
Latest news
Advertisement
Hot News 
MAY 31 DEADLINE ALERT : GPM Reminds Investors of the Looming Deadline in the Class Action Lawsuit Against DS Healthcare Group, Inc.
K&C REIT : Sells Newbury, Berkshire Retail Site For GBP210,000
VOLVERE : Sees Profits Rise In 2015, Boosted By Shire Foods Sales
PURICORE : To Stop Selling ProduceFresh Until Registered As Pesticide
UBISENSE : Notice of AGM
Most Read News
05/27 U S DEPARTMENT OF DEFENSE : Contracts For May 27, 2016
Most recommended articles
05:58a China to open e-commerce, other sectors to foreign investment - newspaper
04:10a A Late Push for the Dollar from Yellen Puts Bulls on Notice
04:10a WEEKLY TRADING FORECAST : NFPs, ECB and Aussie GDP to Combat Expected Slow Start
02:49aDJSTOCKS : Philips Lighting Shares Jump on Market Debut -- WSJ
02:49aDJDiamond Giant Selects New Chief -- WSJ