The US Commodity Futures Trading Commission has obtained an order against Steven G.
The US Commodity Futures Trading Commission has obtained an order against Steven G. Schroeder of Grand Rapids, Michigan, requiring him to pay a USD130,000 civil monetary penalty and to repay nine investors a total of USD187,703 that he lost when he managed their commodity futures trading accounts.
The order, entered on 1 May 2009, by Judge Gordon J. Quist of the US District Court for the Western District of Michigan, Southern Division, stems from a CFTC complaint filed on 27 September 2006. Previously, on 6 October 2006, the judge entered an order permanently barring Schroeder from engaging in any commodity futures trading activity for himself or others, while reserving financial sanctions.
The court found in the previously entered order that Schroeder had made material misrepresentations to prospective managed account clients, including false statements about the size of his personal trading accounts, the profitability of his past trading for himself and his clients, and his educational background. The court also determined that Schroeder had sent a fabricated account statement to prospective clients showing an alleged USD1m balance in his personal account and a phony personal commodity trading track record showing profits of USD730,000.
Pursuant to the 1 May 2009 order, a freeze order remains in place, limiting Schroeder’s use of any funds or assets in his possession until there is full satisfaction of the ordered restitution and civil monetary penalty.
