The CFTC simultaneously filed and settled charges against a Chicago-based Futures Commission Merchant. Rosenthal Collins Group, LLC failed to supervise the handling of an account, which Enrique Villalba, an Ohio resident, used in a multi-million Ponzi scheme. The CFTC sued Villalba in 2010.
According to the CFTC, RCG failed to diligently supervise the handling of the MMA account; the FCM did not follow its own compliance procedures to detect suspicious activity on the account. The amount of money flowing into the MMA account changed significantly over time. Despite the red flags, RCG did not investigate the account or report any suspicious activity. During the CFTC’s investigation of Villalba, RCG failed to respond accurately to the Commission’s document requests.
The CFTC ordered RTC to pay a $1.5 million civil monetary penalty and to pay Villalba’s victims $921,260.90, which was the amount RCG earned on the account.
Read more about this enforcement action.