For Release: October 4, 2006
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint on September 27, 2006, against Muskegon Heights, Michigan, resident Steven G. Schroeder, charging him with fraudulently soliciting more than $1 million from at least 10 clients, whose commodity futures trading accounts he managed. On the same day the complaint was filed, Chief Judge Robert Holmes Bell of the U.S. District Court in Grand Rapids, Michigan, issued a statutory restraining order freezing Schroeder’s assets (see CFTC v. Steven G. Schroeder, No. 06-CV- 0705, W.D. Michigan). The restraining order also prohibits Schroeder from destroying, altering, or disposing of his books and records.
The CFTC complaint alleges that, commencing at least as early as September 2004 and continuing to the present, Schroeder fraudulently solicited and defrauded existing and prospective managed futures account clients, while holding himself out to the public as a commodity trading advisor, including soliciting clients via contacts he established by postings on an internet website, letstalkwinning.com. Among other things, Schroeder is alleged to have lied about the size of his personal trading accounts, the profitability of his past trading for himself and his clients, and his educational background.
Furthermore, the CFTC complaint charges that Schroeder created a fictitious brokerage statement showing his personal trading account with more than $1 million in equity at a time when his personal trading account had a zero balance. Schroeder purportedly lost in excess of $184,465 of client funds by managing their commodity futures trading accounts. In addition to alleging fraud, the complaint charges Schroeder for failing to register with the CFTC.
In its continuing litigation against Schroeder, the CFTC is seeking permanent injunctive relief, the return of funds to defrauded customers, the repayment of ill-gotten gains, and an award of civil monetary penalties.
U.S. District Court Judge Gordon J. Quist has scheduled a public hearing on the CFTC’s request for a preliminary injunction on October 5, 2006 at 1:15 p.m.
The following CFTC staff members are responsible for this case: Susan B. Padove, Robert J. Greenwald, William W. Heitner, Jr., Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: July 26, 2007