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CFTC seeks to revoke registration of Growth Capital Management

The US Commodity Futures Trading Commission (CFTC) has filed a notice of intent to revoke the registration of Growth Capital Management LLC (GCM) of Rockwall, Texas.

GCM is a registered Commodity Pool Operator and Commodity Trading Advisor.

The CFTC’s notice alleges that GCM is subject to statutory disqualification from CFTC registration based on a default judgment order and an order of permanent injunction entered by the US District Court for the Northern District of Texas on 15 March, 2011, and 26 June, 2012, respectively (see CFTC News Release 6299-12, 9 July, 2012). The permanent injunction order requires GCM jointly and severally to make restitution to defrauded customers, disgorge ill-gotten gains, and pay a civil monetary penalty, together totalling over USD9.3 million, for fraudulently soliciting over USD30 million from customers to trade commodity futures contracts and foreign currency (forex). The order also permanently bans GCM from further violations of the anti-fraud provisions of the Commodity Exchange Act and permanently bans GCM from engaging in certain commodities related activity, including trading and seeking registration in any capacity with the CFTC.

The court’s order arises out of a CFTC complaint filed on 27 July, 2010, against GCM, Robert Mihailovich, Sr., and Robert Mihailovich, Jr, the son of Mihailovich, Sr (see CFTC Press Release 5863-10, 28 July, 2010). Mihailovich, Sr was convicted and incarcerated on federal wire fraud charges, served 27 months and, while on a three-year supervised release, fraudulently solicited and accepted more than USD30 million from approximately 93 customers to open managed trading accounts, according to the complaint. Mihailovich, Jr, at the time of GCM’s initial registration, failed to disclose Mihailovich, Sr.’s involvement with GCM and failed to disclose in CFTC registration filings that his father was a controlling principal of GCM, the complaint alleged.

The CFTC Division of Enforcement staff members responsible for this case are Alison B Wilson, Boaz Green, Stephen T Tsai, Maura M Viehmeyer, Philip Tumminio, Michelle Bougas, Anne Termine, Gretchen L Lowe, and Vincent A McGonagle.


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