The U.S. Commodity Futures Trading Commission (CFTC) brought charges today in the U.S. District Court for the Northern District of Illinois, charging Bradley Scott Schiller with solicitation fraud, misappropriating investor funds and issuing false statements in the course of soliciting over $7.8 million from at least six investors to trade commodity futures contracts in managed accounts.
The complaint alleges that Schiller misrepresented his trading performance and falsified account statements to conceal his losses. Schiller allegedly used newly obtained funds to pay back at east $3.5 million to old investors, in addition to leading a lavish lifestyle that included pricy cars and a high-rise condominium. He still owes four of his investors at least $4.35 million.
The CFTC seeks restitution, disgorgement of ill-gotten gains, a civil monetary penalty, trading and registration bans, and permanent injunctions against further violations of federal commodities laws.