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CFTC Charges Arya Motazedi For Defrauding Employer With Gas and Crude Oil Transactions

The U.S. Commodity Futures Trading Commission (CFTC) has issued an Order against Arya Motazedi, of Miami Florida, for engaging in fraudulent gas and crude oil futures transactions. According to the Order, Mr. Motazedi prearranged nearly 34 trades between his former employer’s account and his personal accounts at prices which disadvantaged his former employer’s account. In a practice known as “front running,” Mr. Motazedi allegedly placed orders for his personal accounts ahead of orders he placed for his former employer’s account on at least 12 occasions. The Order states that Mr. Motazedi’s trading activity caused his former employer trading losses of $216,955.80.

The CFTC Order further states that Mr. Motazedi was able to accomplish his fraud by misappropriating non-public, confidential, and material information despite the employer’s internal policies prohibiting such practices and his duty to confidentiality given his relationship with his employer. Moreover, the Order states that Mr. Motazedi breached his duties to his employer by failing to disclose the trading. The CFTC’s Order requires Mr. Motazedi to pay a monetary penalty of $100,000 and restitution of $216,955.80. Additionally, the Order permanently bans Mr. Motazedi from trading and registering as a futures professional in any capacity with the CFTC.

Attorney Robert W. Pearce has successfully defended clients involved in CFTC investigations and enforcement proceedings since the mid-1980s. In fact, Mr. Pearce recently obtained a full dismissal of all claims made against his brokerage client in a leveraged precious metals arbitration proceeding.

Have you have been contacted by the CFTC or believe that you may be subject of an investigation? If so, call Mr. Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce defends various entities and individuals who may be the subject of a CFTC investigation or enforcement action regarding their alleged involvement in commodities laws violations.

This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to representing investors and financial industry professionals throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.