A Charlotte man has been charged with commodity pool fraud and ordered to pay more than $2 million to compensate victims and in penalties, the U.S. Commodity Futures Trading Commission said today.
The commission said it filed and settled charges today with Robert S. Moss. According to the commission, he fraudulently solicited more than $3 million from 22 individuals to trade options on commodity futures through a commodity pool.
According to the commission, from at least 2001 through 2008, Moss misrepresented his trading performance to pool participants and misappropriated at least $1.5 million of participants’ funds for personal and household expenses, including to pay his home mortgage.
As is typical of a Ponzi scheme, Moss used participants’ funds to repay other participants, the commission said, adding that Moss concealed his trading losses and misappropriation by issuing false statements to pool participants.
Moss failed to register as a commodity pool operator with the commission and to operate the pool as a separate legal entity, the commission said, adding that he commingled pool funds and did not provide pool participants with required disclosure documents.
Moss has been ordered to pay $1.5 million in restitution to pool participants and a $500,000 civil monetary penalty.
He has also been banned from any commodity-related activity, including trading and registering with the commission.