For Release: September 4, 2009
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it sued Schaumburg, Illinois-based Maize Capital Management, LLC (Maize Capital) and its chief operating officer Scott M. Ross, for solicitation fraud and issuing false statements involving a $6 million commodity pool. Another of Ross’ companies, Maize Asset Management, LLC (Maize Asset), along with Maize Capital and Ross, was charged with improper handling of customer funds.
According to the CFTC complaint, filed in the U.S. District Court for the Northern District of Illinois, Maize Capital and Ross provided pool participants and prospective participants with written documents that contained false and misleading statements in soliciting funds for and/or operating the pool.
Specifically, the CFTC complaint charges that Maize Capital and Ross, from at least June 18, 2008 through at least January 14, 2009, misrepresented facts regarding the qualifications of investors who would participate in the commodity pool and the minimum amount that would be accepted for investment in the pool. Additionally, they allegedly misrepresented Maize Capital’s legal status as an “exempt” commodity pool operator under the Commodity Exchange Act and the existence and identity of the pool’s administrator and auditor.
The complaint also alleges that Maize Capital and Ross caused periodic account statements to be sent to various pool participants that misrepresented the profitability of their accounts. The CFTC further alleges that Maize Capital, Maize Asset and Ross improperly handled customer funds, in violation of CFTC regulations.
The CFTC seeks orders of permanent injunction against the defendants, repayment to defrauded customers, monetary penalties and other relief.
The following CFTC Division of Enforcement staff are responsible for this action: Joseph Konizeski, Michael Tallarico, William Janulis, Scott Williamson, Rosemary Hollinger and Richard Wagner.
Last Updated: September 4, 2009