The U.S. Commodity Futures Trading Commission (CFTC) has obtained a Consent Order against James Harvey Mason of Graham, North Carolina. The CFTC found that Mr. Mason was never registered with the CFTC in any capacity. According the CFTC, the consent order against Mr. Mason imposes a $1.67 million civil monetary penalty and restitution of $3.88 million in relevance to off-exchange foreign currency commodity pool fraud along with a permanent trading and registration ban.
The CFTC alleged that around July 2010, Mr. Mason fraudulently solicited, accepted and pooled approximately $5,300,000 from about 500 individuals. According to the CFTC, Mr. Mason only used a portion of the funds to trade off-exchange foreign contracts in two commodity pools he formed; the JHM Forex Only Pool and Forex Trading at Home. He allegedly deposited investor funds in bank accounts from when he allegedly misappropriated approximately $780,000 and made payments as part of a “Ponzi sheme.” A “Ponzi scheme” is an unsustainable fraud pyramid that inevitably ends in ruin. Schemers use money raised from latter investors to pay an earlier investor’s returns. Ponzi schemes invariably fall apart when markets deteriorate or when the schemer is unable to raise more cash.
The CFTC alleged that as Mr. Mason was soliciting and accepting funds, he was providing the individuals with documents that intentionally and recklessly contained false and misleading statements, including; investors would not lose their principal; investors would make profits, as much as either 340% to 500% annually, misrepresenting the risk of loss associated with Forex Trading; and failing to disclose his felony wire fraud conviction.
The court entered its Consent Order against Mr. Mason for unlawful acts and practices in violation of the Commodity Exchange Act last year to securities fraud conspiring charges for which he awaits the sentence.
Attorney Pearce has successfully defended clients involved in CFTC investigations and enforcement proceedings since the mid-1980s. In fact, he is currently involved in several CFTC investigations and defending clients involved in leveraged precious metals businesses. Recently, Mr. Pearce 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 the subject of a CFTC 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.