Release Number 8367-21
CFTC Charges Wisconsin Man with Fraud and Misappropriation
March 05, 2021
Washington, D.C. — The Commodity Futures Trading Commission today filed a civil enforcement action in the U.S. District Court for the Eastern District of Wisconsin against Robert Narvett of Appleton, Wisconsin, charging him with fraud and misappropriation of more than $196,000 from at least two individuals. The CFTC’s complaint also charges Narvett for failing to register with the CFTC as a Commodity Trading Advisor as required under the Commodity Exchange Act (CEA).
In its continuing litigation, the CFTC seeks full restitution to defrauded clients, disgorgement of any ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against further violations of the CEA, as charged.
Related Criminal Action
Earlier this week, the U.S. Attorney’s Office for the Eastern District of Wisconsin indicted Narvett on counts of wire fraud, bank fraud, money laundering, and aggravated identity theft. [See United States v. Narvett, No. 21-cr-00050 (E.D. Wis. Mar. 2, 2021)]
The CFTC’s complaint alleges that from at least December 2013 through the present, Narvett fraudulently solicited Wisconsin clients by making false statements in violation of the CEA. Specifically, the complaint alleges that in his solicitations to existing and prospective clients, Narvett made numerous materially false and misleading statements concerning his trading successes and strategies and promised future trading profits. He also omitted material information, including that a federal court in Wisconsin previously entered a judgment against him in an action brought by the Securities and Exchange Commission alleging that he operated an unrelated fraudulent investment scheme.
Narvett, as alleged, fraudulently persuaded clients to provide him with access to their personal commodity futures accounts at a Futures Commission Merchant. He allegedly traded futures contracts in those accounts, abandoned his clients after he lost their money trading, and misappropriated client funds for his own benefit and to benefit the ongoing fraud.
The CFTC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Federal Bureau of Investigation.
The Division of Enforcement staff members responsible for this action are Dmitriy Vilenskiy, Julia Colarusso, Luke Marsh, and Paul G. Hayeck.