Arizona Federal Court orders Anthony Eugene Linton to pay more than USD1.7 million over Ponzi scheme
The US Commodity Futures Trading Commission (CFTC) has obtained a federal court order requiring Anthony Eugene Linton of Tucson, Arizona, doing business as The Private Trading Pool (PTP), to pay a total of USD1,776,610 in restitution, disgorgement, and a civil monetary penalty for defrauding investors in a commodity pool Ponzi scheme involving off-exchange foreign currency trading (forex).
The order, entered by US District Court Judge Frank R. Zapata of the US District Court for the District of Arizona on January 30, 2012, stems from a CFTC complaint filed in January 2011, charging Linton with fraud and misappropriation in connection with the scheme (see CFTC Release 5970-11, January 24, 2011).
The order requires Linton to pay a civil monetary penalty of USD1,044,366, restitution of USD384,122, and disgorgement of USD348,122. The order also permanently prohibits Linton from engaging in any commodity-related activity, including trading, and from registering or seeking exemption from registration with the CFTC.
Judge Zapata found that, beginning in or about October 2007 and continuing through January 2011, Linton violated the anti-fraud provisions of the Commodity Exchange Act by falsely representing to customers that they would receive a 100 percent annual return on their investments. Linton further misrepresented that there were no risks associated with trading forex through PTP, that participant funds were accessible on 24-hours’ notice, and that participants could receive monthly checks which Linton falsely represented to be profits from his trading activities, the order finds. The court also found that Linton misappropriated pool participants’ funds, using them for mortgage and car payments and purchases of numerous collectibles on ebay.
CFTC Division of Enforcement staff members responsible for this case are Susan Gradman, David Slovick, Melissa Glasbrenner, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
- Special Reports
- By Location
- Asian Hedge Funds
- BVI Hedge Fund Services
- Bermuda Hedge Fund Services
- Canada Hedge Fund Services
- Cayman Hedge Fund Services
- Channel Islands Stock Exchange
- Future of offshore funds
- Gibraltar Hedge Fund Services
- Guernsey Hedge Fund Services
- Hedge Funds in Germany
- Hong Kong Hedge Fund Services
- Ireland Hedge Fund Services
- Isle of Man Hedge Fund Services
- Jersey Hedge Fund Services
- Jersey Private Equity Services
- Latin American Hedge Funds
- London Hedge Fund Services
- Luxembourg Hedge Fund Services
- Malta Hedge Fund Services
- Middle East Hedge Fund Services
- Singapore Hedge Fund Services
- South African Hedge Fund Services
- Spanish Hedge Funds 2008
- Switzerland Hedge Funds
- US East Coast Hedge Fund Services
- US Hedge Fund Services
- By Subject
- Conference reports
Latest Special Report
- By Location
- How to set up a hedge fund