The U.S. Commodity Futures Trading Commission ("CFTC") today announced the filing and resolution of charges against a North Carolina man alleged to have operated a Ponzi scheme involving commodity futures. Robert S. Moss, of Charlotte, agreed to settle the charges by paying restitution of $1,501,151.29 to defrauded investors and a $500,000 civil monetary penalty. Moss also agreed to the permanent ban of any future trading or activities involving commodities trading.
From 2001 to 2008, Moss is alleged to have solicited investments exceeding $3 million from twenty-two investors who were told that Moss was a sophisticated commodities trader. Instead of operating a commodity pool, Moss diverted a majority of investor funds for personal use and to repay other participants. Moss also sought to disguise his trading losses by providing investors with fictitious account statements.
According to the CFTC, Moss never registered with the CFTC or as a Commodity Pool Operator. Moss also failed to provide investors with required disclosure statements.