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 | 03:36pm 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
Latest news
Date Title
<1m ago ASETEK A/S : Oslo børs - re. trades
<1m ago PENNSYLVANIA R E I T : REAL ESTATE INVESTMENT TRUST : Results of Operations and Financial Condition, Financial Statements and Exhibits (form 8-K)
<1m ago VIRTUSA : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)
<1m agoDJLONDON MARKETS : FTSE 100 Heads For Best Week In 8 Months
1m ago RESEARCH AND MARKETS : Global and Chinese Pentaerythritol tetranitrate (PETN) Industry Report 2014
1m ago RESEARCH AND MARKETS : Global and Chinese 1,6-Hexanediol Industry Report 2014-2019
2m ago FIRST INDUSTRIAL REALTY : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)
2m ago ORACLE : Town Sports International Improves Business Performance with Oracle Database Appliance; Health Club Chain deploys Oracle E-Business Suite on Oracle Database Appliance to boost operational efficiency and accelerate decision-making
2m ago KROLL BOND RATING AGENCY : Releases Research Report on Risk Reduction for Zions Bancorporation
3m ago ILLINOIS TOOL WORKS : ITW Board of Directors Declare Quarterly Dividend
Latest news
Advertisement
Hot News 
BANCO ESPIRITO SANTO : Angola brings oil firm Sonangol into local BES bank
1SPATIAL : Interim Results for the six month period ended 31 July 2014
AVIV REIT : Omega Healthcare Investors and Aviv REIT to Merge Creating Premier $10Bn Skilled Nursing Facility REIT
ULS TECHNOLOGY : Plunges As Improved Results Still Won't Meet Forecasts
AEGERION PHARMACEUTICALS : tops 3Q profit forecasts
Most Read News
1d ago ENERGEN : tops Street 3Q forecasts
1d ago CHINA MENGNIU DAIRY : Mengniu and Danone Strengthen Strategic Alliance as Danone Subscribes to a Private Placement by Yashili
5h ago BNP shakes off impact of U.S. fine, returns to profit
1d ago FLUOR NEW : ICA Fluor Awarded Fabrication Contract for Shell’s Heavy Oil Extraction Project in Canada
1d ago Hiring business drives LinkedIn's revenue beat
Most recommended articles
5m agoDJING Groep NV 3Q 2014 -- Forecast
12m ago Daimler buys into Agusta as motorbike and car tech converge
14m ago U.S. consumer spending falters; wage gains highest since 2008
23m agoDJCanada Government Budget Deficit Narrows in August on Steep Expense Drop
26m ago Bank of England increases lenders' risk buffers, but less than expected
Dynamic quotes  
ON
| OFF