{"id":1731,"date":"2015-10-22T17:27:08","date_gmt":"2015-10-22T17:27:08","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/10\/cftc_cases_cash_flow_financial"},"modified":"2015-10-22T17:27:08","modified_gmt":"2015-10-22T17:27:08","slug":"cftc-cases-cash-flow-financial","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/cftc-cases-cash-flow-financial\/","title":{"rendered":"CFTC Cases: Cash Flow Financial Must Pay Over $91.9M in Commodity Pool Ponzi Scam, BNP Paribas to Pay $140K Over Improper Segregation of Customer Funds, & Unauthorized Trading Leads to $500K Penalty"},"content":{"rendered":"

\t\t\t\tCash Flow Financial Embroiled in Commodity Pool Ponzi Scam<\/strong>
\nThe U.S. Commodity Futures Trading Commission said that Cash Flow Financial LLC, Alan James Watson, and Michael S. Potts will pay over $91.9 million for their involvement in a commodity pool Ponzi scam. The regulator claims that the defendants fraudulently solicited at least $45M from over 600 investors and misappropriated most of their money for their own spending and to cover principal and supposed “returns” to other commodity pool investors. <\/p>\n

As part of the default judgment, Cash Flow Financial\/Watson must pay restitution and a $2M civil monetary penalty, and interest. The firm is permanently enjoined from taking part in commodity futures, options, swaps, forex, and securities futures product transactions. Potts must pay an over $558K penalty, interest, and disgorge over $186K in illicit profits. Watson will pay over $37M in restitution. <\/p>\n

Also, in Virginia, Watson pleaded guilty to wire fraud in a related criminal case. He must serve 12 years behind bars. <\/p>\n

BNP Paribas Securities Resolves Charges of Improper Investments Related to Segregated Customer Monies<\/strong>
\nBNP Paribas Securities Corp. will pay a civil penalty of $140K to settle charges accusing the registered Futures Commission Merchant of violating the regulator’s limits that apply to segregated commodity customer funds and how they are invested. The firm reported two violations to the agency and another one was discovered by CME Group Inc., which is FCM’s designated self-regulatory organization. <\/p>\n

According to CFTC, on two of three days, BNP Paribas Securities invested over 10% of segregated customer funds in a money market mutual fund, which was a violation. Also, BNP purportedly invested over 50% of segregated customer funds in money market mutual funds, which was also a violation.
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Cash Flow Financial Embroiled in Commodity Pool Ponzi Scam The U.S. Commodity Futures Trading Commission said that Cash Flow Financial LLC, Alan James Watson, and Michael S. Potts will pay over $91.9 million for their involvement in a commodity pool Ponzi scam. The regulator claims that the defendants fraudulently solicited at least $45M from over […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3810],"tags":[],"class_list":["post-1731","post","type-post","status-publish","format-standard","hentry","category-cftc"],"yoast_head":"\nCFTC Cases: Cash Flow Financial Must Pay Over $91.9M in Commodity Pool Ponzi Scam, BNP Paribas to Pay $140K Over Improper Segregation of Customer Funds, & Unauthorized Trading Leads to $500K Penalty — Investor Lawyers Blog — October 22, 2015<\/title>\n<meta name=\"description\" content=\"Cash Flow Financial Embroiled in Commodity Pool Ponzi Scam The U.S. Commodity Futures Trading Commission said that Cash Flow Financial LLC, Alan James — October 22, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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