The US Commodity Futures Trading Commission has obtained a preliminary injunction against Jay C. Nolan of Wilmette, Illinois and his company Lodge Capital Group of Northfield, Illinois for committing commodity pool fraud.
The CFTC charged the defendants in January 2010 with misappropriation and fraud in operating a commodity pool that solicited approximately USD3.9m from at least five individuals.
The preliminary injunction order, entered by US District Court Judge Charles R. Norgle of the Northern District of Illinois, maintains the asset freeze entered against the defendants by the court on 26 January 2010, and prohibits them from further violations of the Commodity Exchange Act.
The CFTC alleges that the defendants made misrepresentations and failed to disclose material facts to pool participants regarding the profitability of the pool and the pool’s performance.
The complaint further alleges that the defendants sent false account statements to participants, misrepresenting the value of their interests in the pool and the pool’s assets and liabilities and that Nolan misappropriated customer funds.
In its continuing litigation, the CFTC seeks a return of ill-gotten gains, restitution to defrauded investors, civil monetary penalties and permanent injunctions against the defendants.
