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

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
02:07p MORGAN STANLEY : BRIEF: Prep boys golf: 12 area teams to compete in Morgan Stanley Shoot-Out on Wednesday and Thursday
02:07p Two Mississippi Youth Honored for Volunteerism at National Award Ceremony in Washington, D.C.
02:07p MASS INNOVATION LABS : Launches 124,000ft2 Co-working Lab Space in Kendall Square
02:07p Two Missouri Youth Honored for Volunteerism at National Award Ceremony in Washington, D.C.
02:07p Two Maine Youth Honored for Volunteerism at National Award Ceremony in Washington, D.C.
02:06p ZILLOW : #NextGenAgent Chat: Harnessing the Power of Data
02:06p MARRIOTT : Maktoum bin Mohammed receives CEO of Marriott International
02:06p Caleb White of Commerce Township, Michigan Named One of America’s Top 10 Youth Volunteers of 2015
02:06p Two Utah Youth Honored for Volunteerism at National Award Ceremony in Washington, D.C.
02:06p Eric Li of Manvel, Texas Named One of America’s Top 10 Youth Volunteers of 2015
Latest news
Advertisement
Hot News 
CYAN : Announces Pending Acquisition by Ciena; Releases First Quarter 2015 Financial Results
ADEPT TELECOM : to Acquire 100% Stake in Centrix
NETSCIENTIFIC : Enters into Joint Venture Agreement with iMPak Health
InterCloud Systems Announces the Launching of NFVGrid, a Network Functions Virtualization Orchestration Platform
BROADSOFT : Reports First Quarter 2015 Financial Results
Most Read News
05/03 BATHURST RESOURCES : BRL – Initial Director’s Interest – P Westerhuis
05/03 ST JOSEPH : Feichter gets NFL mini-camp shot with Browns
05/03DJWORLEYPARSONS : Cuts Staff, Flags One-Off Charges
05/03 STARPHARMA : AstraZeneca to develop oncology drug using SPL’s DEP™ technology
05:16a ROYAL DUTCH SHELL A : Nazarbayev, Royal Dutch Shell CEO meet in Astana
Most recommended articles
02:03pDJMARKET SNAPSHOT : U.S. Stocks Edge Higher; S&P 500 Nears Record
02:01p Pension, labour disputes dog Greek talks as cash dwindles
01:55pDJCisco Systems Names Chambers Replacement--6th Update
01:54p Exor committed to $6.4 billion spurned offer for PartnerRe
01:51p Canadian exchange operator TMX Group to trim fees, rebates
Dynamic quotes  
ON
| OFF