Release Number 8427-21
CFTC Orders Michigan Man to Pay $150,000 for Registration Violation of Commodity Trading Advisor Regulation
September 22, 2021
Washington, D.C. — The Commodity Futures Trading Commission today issued an order filing and settling charges against Brian Mitchell, a Michigan resident, for failing to register as a commodity trading advisor (CTA). The order requires Mitchell to pay a $150,000 civil monetary penalty and to cease and desist from any further violations of the Commodity Exchange Act. In addition, the order imposes a 3-year ban on Mitchell from trading on or subject to the rules of any CFTC-registered entity, and from engaging in any activities requiring CFTC registration.
Between January 2018 and January 2019, Mitchell, who was subject to a temporary membership ban from the National Futures Association (NFA), held himself out to friends and acquaintances as an experienced and licensed commodities trader and helped over 20 clients to establish their own commodity trading accounts. Mitchell engaged in the business of directing client commodity trading accounts as a registered futures commission merchant (FCM) while hiding his identity from the FCM in order to avoid registering as a CTA. Although Mitchell’s name did not appear on the client’s account documentation, Mitchell handled all communications with the clients and directed their trading. During this time, Mitchell was not registered as a CTA.
The CFTC thanks and acknowledges the assistance of the National Futures Association.
The Division of Enforcement staff members responsible for this case are George Malas, Jason Gizzarelli, Traci Rodriguez and Paul G. Hayeck.