Bringing you live news and features since 2006 

CFTC charges Feisal Sharif over USD5.4m commodity pool Ponzi scheme

RELATED TOPICS​

The US Commodity Futures Trading Commission has filed a civil enforcement action charging defendant Feisal Sharif of Branford, Connecticut with operating a commodity pool Ponzi scheme that solicited approximately USD5.4m from at least 50 people to invest in a commodity pool named First Financial.



Sharif allegedly misappropriated at least USD900,000 of pool participants’ funds, using the funds to pay personal expenses and purchase gifts.

The CFTC complaint also charges Sharif with failing to register as a commodity pool operator (CPO) of First Financial.

According to the complaint filed on 26 November in the US District Court for the District of Connecticut, from at least January 2007 and continuing until 13 September 2012, Sharif, in order to entice prospective participants, guaranteed monthly and yearly returns of one per cent to 15 per cent on investments in the pool.

Of the USD5.4m solicited from pool participants, at least USD900,000 was misappropriated, approximately USD1.32m was lost trading futures in accounts in the name of First Financial, and USD3.17m was paid out to certain pool participants as fictitious “profits” or returns of principal, according to the complaint. Sharif allegedly admitted to one pool participant that he was operating a Ponzi scheme.

To falsely assure pool participants that their funds were safe in the pool’s trading accounts, Sharif allegedly fabricated trading account statements from First Financial and from futures commission merchants.

In its continuing litigation, the CFTC seeks civil monetary penalties, trading and registration bans, restitution, disgorgement, and a permanent injunction against further violations of the federal commodities laws.

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by