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 'We don't have a magic wand', says ECB's Constancio
<1m ago J B HUNT TRANSPORT SERVICES : Jbht announces payment of dividend
<1m ago LACLEDE : Declares Dividend
<1m ago Stratos Will Join 1000 Volunteers to Restore 25 Seattle-Area Homes on April 26
<1m ago ATLANTIC RECORDS : Signs Pop Phenomenon Katy Tiz; New Single, "The Big Bang," Exploding at Top 40 Radio After Being Feted by Clear Channel/iHeartRadio; Rock Mafia-Produced Track Just Declared American Top 40's "Breakout" Song of the Week; Debut Album Due Later This Year
1m ago CLIENTS FIRST : Lockton's Private Exchange Strategy
2m ago BARCLAYS : £1.25m Cyber Heist Leader Jailed
2m ago SELECTIVE INSURANCE : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)
2m ago MAGELLAN HEALTH SERVICES : to Present at Two Upcoming Healthcare Conferences
2m ago COHU : to Present at Jefferies 2014 Global TMT Conference
Latest news
Advertisement
Hot News 
SERVICEPOWER TECHNOLOGIES : Forms Strategic Relationship with Bosch
GREETINGS : Says Full-Year In Line With Expectations
Eagle Rock Announces Suspension of Distribution, Intent to Resume Following Close of Midstream Contribution Transaction
Elizabeth Arden Hires Goldman Sachs to Assist in Possible Sale -Reuters
CLEARFIELD : Reports Fiscal 2014 2nd Quarter Results
Most Read News
10h ago Juicy Apple buoys shares, euro volatility sinks
12h ago BLUNT BAYERN GIVEN A REAL MASTERCLASS ; CHAMPIONS LEAGUE Semi-final first leg
1d ago BUFFETT : moving oil by rail safely major industry concern
7h ago Van Gaal's ego may be too big even for United
1d ago ACTIVISION BLIZZARD : Newest Skylanders® Game - Skylanders Trap TeamTM - Takes Toys-to-Life Phenomenon to New Levels by Bringing Digital Characters into the Physical World
Most recommended articles
10h ago Juicy Apple buoys shares, euro volatility sinks
2h ago Healthcare deal hopes push FTSE to seven-week closing high
2d ago Barclays joins retreat from commodities as new rules bite
04/17 BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
11m agoDJZimmer to Buy Biomet for $13.35 Billion -- 5th Update
Dynamic quotes  
ON
| OFF