The CFTC filed a federal complaint in North Carolina, charging Mitchell Brian Huffman with defrauding individuals while operating a commodity pool scheme. Huffman allegedly used the investments to take a trip to Las Vegas, buy several cars, and go on a group Hawaiian vacation with some of his defrauded investors.
From August 2006 to March 11, 2011, the CFTC alleges Huffman approached family and friends to allow him to trade commodity futures contracts on their behalf. Huffman allegedly entered into “sponsorship agreements” with his investors, where he claimed he would generate profits of 100 to 150 percent per year, retaining 20 percent of all profits as a service fee. He allegedly solicited 30 participants throughout the U.S. and accepted an accumulated $3.2 million. The CFTC alleges Huffman used the funds to purchase two Land Rovers and a Smart Car. He spent $71,255 on his classic car collection, took a Disney cruise, flew to Hawaii and Las Vegas, and donated around $50,000 to charitable organizations, among other personal uses.
The trip to Hawaii was allegedly a 25th wedding anniversary for Huffman. He took several pool participants with him on his fraudulent dime, never disclosing he was using his friends’ funds to pay for the vacation.
According to the complaint, Huffman admitted his fraud to FBI agents in Charlotte when he could no longer sustain his scheme.
In September 2011, Huffman pleaded guilty to one count of commodities fraud.
Read more about this enforcement action.
© photo by Steven Depolo