U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES IOWA MAN WITH FRAUD
CFTC Alleges that Victor Lochmann Misappropriated Customer Funds and Engaged in Unauthorized Trading
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of an administrative enforcement action against Victor Lochmann of Humeston, Iowa.
The CFTC's action charges Lochmann with fraudulently soliciting approximately $56,000 from an Iowa farmer, purportedly to trade commodity futures through Lochmann’s personal account. The complaint further charges that Lochmann misappropriated a portion of those funds, and engaged in unauthorized trading in violation of the anti-fraud provisions of the Commodity Exchange Act (CEA) (In re: Victor Lochmann, CFTC Docket No. 05-12).
The CFTC complaint specifically charges that, from August through December 2003, an Iowa farmer gave Lochmann, his former broker, approximately $56,000 to trade commodity futures. Lochmann deposited the funds into his personal checking account, transferred some of the funds into his personal commodity futures trading account and engaged in unauthorized trading of the funds, according to the complaint. The complaint also alleges that Lochmann misappropriated at least $19,000 from those funds.
The CFTC is seeking an order requiring Lochmann to cease and desist from further violations of the CEA, pay a civil monetary penalty, and be permanently prohibited from trading commodity futures.
The following Division of Enforcement staff members are responsible for this case: Susan J. Gradman, Ralph Der Asadourian, Scott R. Williamson, and Rosemary Hollinger.
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The CFTC encourages members of the public to bring to our attention any suspicious activities involving futures or commodity options, including matters involving foreign currency (forex) investments or suspicious Internet websites.
You may contact the CFTC at 1-866-FON-CFTC (1-866-366-2382), visit us at our Customer Protection web page: (www.cftc.gov/cftc/cftccustomer.htm), or fill out our Internet Report Form identifying your concerns (www.cftc.gov/enf/enfform.htm).
In addition, the CFTC publishes a series of Consumer Advisories at http://www.cftc.gov/cftc/cftccustomer.htm#advisory alerting the public to warning signs of possible fraudulent activity and offering precautions individuals should take before committing funds.
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