Member access

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
Recommend:
0

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
Recommend :
0
React to this article
Latest news
Date Title
<1m ago BEESTON ENTERPRISES LTD. : announces one-for-ten reverse split
1m ago EMERA : Demonstrates Benefit of Federal Loan Guarantee for Nova Scotia Electricity Customers - April 23, 2014
1m ago GOVERNMENT OF CANADA : Harper Government Invests to Strengthen Beef Industry's Reputation as a World-Class Producer
1m ago STARBUCKS : Behind Starbucks Music with Timothy Jones, called ‘One of the Quiet Shapers of American Culture’
1m ago DEFENSE TECHNOLOGY SYSTEMS : Study Results from National University of Defense Technology Update Understanding of Life Science Research
2m ago INTRODUCING ANCILYZE : The First Ancillary Product Optimization Service for Healthcare Distributors and Their Retail Consumers
3m ago APPLE SLICE : Share split makes joining the Dow more likely
3m ago ARRAY BIOPHARMA : To Report Financial Results For The Third Quarter Of Fiscal 2014 On April 29, 2014
3m ago MEDICAL SCIENCES : Study Findings from Tabriz University of Medical Sciences Broaden Understanding of Clinical Anatomy
3m ago QIHOO 360 TECHNOLOGY : Forms Strategic Partnership with Sungy Mobile to Target International Expansion
Latest news
Advertisement
Hot News 
MATRA PETROLEUM : EGM Statement – Cancellation of trading on AIM
RTC : Board Appointment
ZOTEFOAMS : Unilever to use Zotefoams's MuCell® Extrusion technology for its Dove Body Wash Bottles in Europe
IRONVELD : Shares Jump 26% As Study Confirms Viability Of Iron Project
WEDNESDAY SECTOR LEADERS : Rental, Leasing, & Royalty, Precious Metals
Most Read News
21m ago GE in talks to buy France's Alstom - Bloomberg
31m ago COMMERCE RESOURCES : Comments on Recent Rockstone Article on Comparative Evaluation of a Rare Earth Deposit
26m ago COLUMBIA : Commercial Bancorp : Reports First Quarter 2014 Results
21m ago MARRIOTT : The American Bankruptcy Institute (ABI) - Conference
33m ago CELANESE : to Add Fortron® PPS Compounding Capability to Nanjing Integrated Chemical Complex
Most recommended articles
12h ago Global share rally peters out, euro lifted by PMI boost
6h ago Weaker FTSE 100 gets support from ABF and AstraZeneca
1d ago Barclays joins retreat from commodities as new rules bite
6d ago BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
2m ago APPLE SLICE : Share split makes joining the Dow more likely
Dynamic quotes  
ON
| OFF