The Commodity and Futures Trading Commission (CFTC) charged Pennsylvania-based New Century Investment Management LLC with Operating a Commodity Pool Ponzi Scheme. The defendants allegedly defrauded pool participants of at least $2.2 million and misappropriated participants’ funds to pay personal debts and living expenses.

The CFTC complaint, filed on April 5, 2011 in the U.S. District Court for the Eastern District of Pennsylvania, alleges that New Century defrauded at least 12 pool participants between March 2005 to September 2010, while acting respectively as a Commodity Pool Operator (CPO) and an Associated Person of a CPO. The CFTC complaint further alleges that the defendants misappropriated participants’ funds by using the money to pay personal debts and living expenses.

Read more about this CFTC enforcement action here.