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

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

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

04/23/2013 | 02:36pm US/Eastern

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
React to this article
Latest news
Date Title
12:15p ECB's Weidmann says fallout from China stock market decline limited
12:15p German finmin says G20 agreed no need for nervousness on China growth
12:14p CIBER : cites 'lies' in state lawsuit
12:12p IMF's Lagarde says Fed should not rush its rate rise decision
11:50a CENTENE : CEO to market: Wait and see
11:49a MAZDA MOTOR : Driver charged with manslaughter, related charges after deadly crash in Adamstown
11:48a OPTOVUE : Showcases Retinal Blood Flow Measurement Capability for Improving Management of Diabetes-Related Vision Loss
11:42a SHANGHAI TONVA PETROCHEMICAL : Monthly Returns Monthly Return of Equity Issuer on Movements in Securities for the month ended 31 August 2015
11:37a FOR EARTH : Door open at new southside UMC
11:27a In Qatar, Venezuela's Maduro pushes for OPEC heads of state summit
Latest news
Advertisement
Hot News 
DOMINO PRINTING SCIENCES : Partners with Express Packaging
IS SOLUTIONS : To "Significantly Exceed" Market View After Strong Start
BIOVENTIX : Trading Update and Notice of Results
SCISYS : Allays Banking Covenant Breach Fears After Lender Talks
VINCE : Reports Second Quarter and First Half Fiscal 2015 Results; Revises guidance for fiscal 2015
Most Read News
09/04 EQUITY ALERT : Rosen Law Firm Announces Filing of Securities Class Action Lawsuit Against Abengoa, S.A. to Recover Investor Losses - ABGB
09/04 EQUITY ALERT : Rosen Law Firm Announces Filing of Securities Class Action Lawsuit Against Whole Foods Market, Inc. to Recover Investor Losses - WFM
09/04 TRADING ALERT : Rosen Law Firm Reminds Constant Contact, Inc. Investors of Important Class Action Deadline - CTCT
09/04 EQUITY ALERT : Rosen Law Firm Announces Filing of Securities Class Action Lawsuit Against American Express Company to Recover Investor Losses -- AXP
09/04 COLORADO WYOMING PETROLEUM MARKETERS ASSOCIATION : EPA Sends Ozone Proposed Rule to White House - PMAA Responds
Most recommended articles
12:15p ECB's Weidmann says fallout from China stock market decline limited
12:15p German finmin says G20 agreed no need for nervousness on China growth
12:12p IMF's Lagarde says Fed should not rush its rate rise decision
11:27a In Qatar, Venezuela's Maduro pushes for OPEC heads of state summit
11:15a IMF'S LAGARDE : G20 must step up growth efforts