April 5, 2013
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it obtained a federal court Order requiring Defendants Brant L. Rushton (B. Rushton) and Summit Trading & Capital LLC (Summit) of Champaign, Illinois, to jointly pay approximately $1.6 million in restitution to defrauded pool participants and a civil monetary penalty of approximately $3.2 million. The court’s grant of summary judgment also imposes permanent trading and registration bans against the Defendants and prohibits them from violating the anti-fraud and other provisions of the Commodity Exchange Act and Commission Regulations, as charged.
The Order, entered April 3, 2013, by Judge James E. Shadid of the U.S. District Court for the Central District of Illinois, stems from a CFTC enforcement action filed November 29, 2011 against Summit, B. Rushton and his wife Melissa C. Rushton (M. Rushton), charging them with fraudulent operation of a commodity pool (see CFTC Press Release 6150-11, December 1, 2011).
The Order finds that B. Rushton and Summit fraudulently solicited and accepted almost $2 million from multiple pool participants for investment in one or more commodity pools that traded futures contracts. The Order specifically finds that in soliciting participants, B. Rushton falsely represented that he was a successful futures trader who generated consistent profits, when, in fact, B. Rushton’s trading resulted in consistent losses that were concealed from pool participants by issuance of false account statements. According to the Order, almost $1.2 million of participant funds was misappropriated by B. Rushton and Summit.
On July 12, 2012, B. Rushton pled guilty to criminal charges in a parallel federal criminal action stemming from the same conduct and will begin serving an eight-year prison sentence later this year. The CFTC’s action is still pending against M. Rushton, the sole remaining Defendant.
The CFTC Division of Enforcement staff members responsible for this action are Daniel Jordan, Michael Loconte, Erica Bodin, Rick Glaser, and Richard Wagner.
Last Updated: April 5, 2013