The U.S. Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the District of Oregon has issued a consent order against Robert L. Adams and SimTradePro Incorporated, both based in Oregon, following a case of fraud involving multiple commodity pools.
According to the CFTC, Adams and SimTradePro fraudulently solicited and accepted over $2.3 million from more than 100 customers who invested in leveraged foreign currency exchange and precious metals contracts through their commodity pools. Many victims were individuals preparing for retirement. The court found that Adams and SimTradePro misrepresented fee structures by claiming they would only be compensated if customers profited, while also concealing trading losses. Additionally, SimTradePro was found to have acted unlawfully as a commodity pool operator and commodity trading advisor.
The consent order requires the defendants to pay $2,072,986 in restitution to those affected by the scheme. It also imposes permanent bans on trading or registering with the CFTC for both Adams and SimTradePro, as well as prohibiting future violations of relevant regulations.
In a related criminal case concerning the same misconduct, Adams received a sentence of two-and-a-half years in prison and was ordered to pay restitution.
The CFTC noted: “Orders requiring repayment of funds to victims may not always result in the recovery of any money because the wrongdoers may not have sufficient funds or assets.” The agency stated it remains committed to protecting customers and holding violators accountable.
Assistance in this case was provided by several regulatory bodies including the United Kingdom Financial Conduct Authority, Oregon Division of Financial Regulation, Australian Securities and Investments Commission, and Central Bank of Ireland.
Staff members from the CFTC’s Division of Enforcement involved in this action included Harry E. Wedewer, Mary Lutz, Patrick Marquardt, Chris Giglio, Lenel Hickson, and Chuck Marvine.
